Manchester City say they are “disappointed, but regrettably not surprised” after being referred to Uefa’s financial control body adjudicatory chamber.
Uefa investigators want City to be banned from the Champions League for a season if they are found guilty of breaking Financial Fair Play (FFP) rules.
Chief investigator Yves Leterme has made his recommendation but it is not known if he supports a ban.
City said “the accusation of financial irregularities remains entirely false”.
Former Belgian prime minister Leterme, chairman of the investigatory panel of Uefa’s independent financial control board (CFCB IC), his team looked at evidence first uncovered in a series of leaks published by German newspaper Der Spiegel last year.
The reports alleged that City broke FFP regulations by inflating the value of a multimillion-pound sponsorship deal. City were fined £49m in 2014 for a previous breach of regulations.
Uefa said Leterme, “after having consulted with the other members of the independent investigatory chamber”, decided “to refer Manchester City FC to the CFCB adjudicatory chamber following the conclusion of his investigation”.