Manchester City says they are “dissatisfied, but regrettably not amazed” after being referred to Uefa’s financial control body adjudicatory chamber.
Chief investigator Yves Leterme has made his recommendation but it is not known if he supports a ban.
Former Belgian Prime Minister Leterme, chairman of the investigatory panel of Uefa’s independent financial control board (CFCB IC), his team looked at the 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 was fined £49m in 2014 for a previous breach of regulations.