The Court of Arbitration for Sport (CAS), on Monday, said it has overturned Manchester City’s two-year ban from European football.
The decision by the Lausanne-based court means Pep Guardiola’s team will compete in next season’s UEFA Champions League.
CAS ruled that Manchester City did not breach Financial Fair Play (FFP) rules by disguising equity funding as sponsorship.
The court also reduced a fine for failing to cooperate with UEFA to 10 million euros (8.93 million pounds) from 30 million euros.
“Most of the alleged breaches reported by the (UEFA) Adjudicatory Chamber of the CFCB were either not established or time-barred,” CAS said in a statement.
UEFA, European football’s governing body, had ruled in February that Manchester City had committed serious FFP breaches and failed to cooperate with its investigation.
Missing out on the UEFA Champions League would have cost Manchester City, who have denied wrongdoing, as much as 100 million pounds in prize money and broadcast revenue, as well as matchday and other revenues.
The FFP regulations are designed to stop clubs running up big losses through spending on players.
They also ensure sponsorship deals are based on their real market value and are genuine commercial agreements —- and not ways for owners to pump cash into a club to get around the rules.