The ban is set to start from next season and the club has been fined an additional £30 million for committing serious flouting of the UEFA financial fair play regulations. The Etihad outfit were found guilty of falsely over-inflating their sponsorship revenues by the UEFA Club Financial Control Body (UFCB).
The decision was made by the Adjudicatory Chamber of the Club Financial Control Body, who have also accused the club of not cooperating in the investigations. The club replied in an official statement that they are disappointed by UEFA's decision and that they would appeal against it.
Manchester City have the right to appeal to the Court of Arbitration for Sport, and they have vowed to do exactly that "at the earliest opportunity". City's official statement read:
"This is a case initiated by UEFA, prosecuted by UEFA and judged by UEFA. With this prejudicial process now over, the Club will pursue an impartial judgment as quickly as possible and will therefore, in the first instance, commence proceedings with the Court of Arbitration for Sport at the earliest opportunity."
As per the findings of the UFCB, Manchester City's books were fudged by dint of association with Sheikh Mansour's Etihad Airways. It is believed that the City's ownership itself provided sponsorship to the club with their own assets and resources.
Manchester City are scheduled to play their Round of 16 match of the 2019-20 Champions League this week. If the ban is upheld, it would be a big blow to the club's European ambitions; the Champions League trophy has been their prime target for a while now.