According to the Daily Express, City face possible sanctions from UEFA for failing to adhere to the regulations, with a salary cap and squad cut among the punishments mentioned.
That could open up an opportunity for United to steal ahead of their city rivals in their bid to sign their top transfer targets this summer.
Both United and City have been linked with Eliaquim Mangala, who has impressed for FC Porto this season. The Portuguese giants are notoriously tough negotiators and many reports have centred around Porto's £37m asking price for the French defender.
But with City out of the race, Porto would not be able to spark a bidding war between the two Premier League rivals.
And that's not the only potential repercussion of the financial sanctions that City may find themselves placed under for next season. Arsenal full-back Bacary Sagna is out of contract and the Gunners fear losing him to City.
They may not have to worry about that if the FFP cuts bite this summer. And similarly, Chelsea may see PSG's very public pursuit of Eden Hazard die an early death if the French club go the same way as City.
They are also under investigation for potential FFP breaches.