London - Manchester City have been banned from European competitions for the next two seasons for "serious financial fair-play breaches", UEFA announced on Friday.
Pep Guardiola's City face Real Madrid in this season's Champions League last 16.
"The adjudicatory chamber, having considered all the evidence, has found that Manchester City Football Club committed serious breaches of the UEFA Club Licensing and Financial Fair Play Regulations by overstating its sponsorship revenue in its accounts and in the break-even information submitted to UEFA between 2012 and 2016," European football's governing body said.
Sheffield United, promoted to the top flight last year, sit in fifth.
Seven-time European champions AC Milan were banned from this season's Europa League for FFP breaches.