UEFA formally investigating alleged Manchester City FFP violations

UEFA has launched a formal investigation into Manchester City for alleged Financial Fair Play (FFP) violations, the European governing body confirmed Thursday.

"The Investigatory Chamber of the independent UEFA Club Financial Control Body has today opened a formal investigation into Manchester City FC for potential breaches of Financial Fair Play regulations. The investigation will focus on several alleged violations of FFP," a statement read.

Shortly after UEFA announced its investigation, Manchester City released a statement saying they welcome the opportunity to end speculation over the club's reported transgressions.

Manchester City welcomes the opening of a formal UEFA investigation as an opportunity to bring to an end the speculation resulting from the illegal hacking and out-of-context publication of City emails. The accusation of financial irregularities are entirely false. The Club's published accounts are full and complete and a matter of legal and regulatory record.

The club could be banned from competing in European competitions such as the Champions League if found guilty of violating FFP rules, according to Martyn Ziegler of The Times

UEFA didn't disclose the specifics of its investigation but several breaches have been reported by the media in recent months.

The latest alleged violation centers around an illegal payment made to the agent of former City player Jadon Sancho. It was reported that the club concealed a £200,000 payment to Emeka Obasi by offering him a role as a scout when Sancho, who was 14 years old at the time, was not permitted under FIFA rules to have an agent.

The Football Leaks series by Der Spiegel published numerous internal documents in November detailing Manchester City's inner workings.

City is alleged to have deceived UEFA officials for several years. A statement from the Manchester side declined to address specific allegations except to say they were "an attempt to damage the club's reputation," according to The Associated Press.

A UEFA investigation in 2014 revealed that City breached FFP rules, resulting in a £49-million fine, of which £32 million was suspended. City were also forced to reduce their Champions League squad for the 2014-15 campaign.

The reigning Premier League champions take on FC Schalke next in the second leg of their round of 16 encounter. Pep Guardiola's side beat Schalke 3-2 in the first leg despite being down a man.