Manchester City are to be investigated by UEFA for alleged Financial Fair Play violations.
Information on the case was provided by the notorious 'Football Leaks' from German publication Der Spiegel.
Last night, City released a statement on the issue, declaring their innocence and intent to cooperate.
The Citizens wrote: "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."
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If City are found guilty, they could face a significant ban from the Champions League.
It's a very unwelcome situation for Pep Guardiola and his squad, who are still holding ambitions of an historic treble this season.
And to make matters worse, it seems the rest of the Premier League are determined to see City punished for their financial misdemeanours.
As reported by The Times, up to 12 teams in England's top-flight will write to the Premier League to understand their position on the accusations aimed at City and demand action.
It has been described as an 'unprecedented move' with more clubs being asked to sign up last night - the majority are already on board, though.
UEFA's statement on the matter read: "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 (FFP) regulations.
"The investigation will focus on several alleged violations of FFP that were recently made public in various media outlets.
"UEFA will make no further comments on the matter while the investigation is ongoing."
City were found guilty of breaching the FFP laws back in 2014, but that only resulted in fines and a reduced squad for the 2014/15 Champions League.
However, this time around could yield much more serious consequences.News Now - Sport News