Manchester City have lost their attempt to block a UEFA probe into financial fair play violations.
The Premier League champions have been charged with breaching Financial Fair Play regulations.
They appealed to the Court of Arbitration for Sport in a bid to prevent the investigation.
But their case has been thrown out, leaving them facing potential sanctions from the European governing body.
The news comes with City set to avoid a Champions League ban as punishment for potential breach of Financial Fair Play rules.
The Athletic have claimed UEFA are struggling to enforce their own regulations and City will avoid missing out on competing in Europe’s top club competition.
City were reported previously to believe they have “no case to answer” and they contested the “legitimacy and haste of the investigation”.
UEFA formally opened the investigation in March following a series of leaks into their financial conduct published in German outlet Der Spiegel.
Although City have yet to make a comment, the Abu Dhabi-owned club have previously denied claims of wrongdoing.
“The accusation of financial irregularities remains entirely false and the CFCB IC referral ignores a comprehensive body of irrefutable evidence provided by Manchester City FC to the Chamber,” the club said in a statement last month.
— 90 Minutes Football News (@footy90com) November 15, 2019
“The decision contains mistakes, misinterpretations and confusions fundamentally borne out of a basic lack of due process and there remain significant unresolved matters raised by Manchester City FC as part of what the Club has found to be a wholly unsatisfactory, curtailed, and hostile process.”