Manchester City have failed in their attempts to block UEFA from investigating potential Financial Fair Play breaches by the Premier League champions.
City have been fired to four Premier League titles in seven years thanks to big-spending Emirati owner Sheikh Mansour bin Zayed al Nahyan, a member of the Abu Dhabi royal family.
In May, they lodged an appeal to the Court of Arbitration for Sport (CAS) to stop an investigation from UEFA's Club Financial Control Body (CBFC) into their finances following allegations published in German magazine Der Spiegel that they had misled UEFA about the nature of their sponsorship deals.
CAS general secretary Matthieu Reeb told reporters that the Premier League champions' appeal had been judged inadmissible.
It had been rumoured that they could face a ban from the Champions League following a UEFA inquiry, but recent reports have stated that a more lenient punishment such as a fine would be more likely.
Nevertheless, UEFA is now set to investigate the allegations from the Der Spiegel article after City's attempts to shut down the probe were thrown out.
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The CAS Panel determined that MCFC’s appeal was inadmissible, considering that "an appeal against the decision of a federation, association or sports-related body may be filed with CAS (…) if the Appellant has exhausted the legal remedies available to it prior to the appeal, in accordance with the statutes or regulations of that body.”