The severity of the ban from both of Uefa's elite club competitions, and the scale of the fine, reflects how seriously Uefa's FFP compliance bodies consider the club to have breached the rules and code of conduct.
In a statement published shortly after the news broke, Manchester City announced that it is "disappointed" by the ruling and will be seeking an impartial judgment from the Court of Arbitration for Sport.
The reigning Premier League champions have also been fined 30 million euros ($33 million) in an investigation that was sparked by leaks showing City overstated sponsorship revenue. The subsequent flawed and consistently leaked UEFA process he oversaw has meant that there was little doubt in the result that he would deliver. They have already formally complained to the Uefa Disciplinary body.
Manchester City has the right to appeal this decision to the Court of Arbitration for Sport.More news: Woods fades to five adrift at PGA Genesis Invitational
The club have made no secret of their desire to win European football's top prize, the Champions League, for the first time and manager Pep Guardiola admitted a year ago that his tenure is likely to be judged on whether he succeeds in the competition or not, despite having already won two league crowns.
Manchester United's Harry Maguire tackles Manchester City's Raheem Sterling, left, during the English League Cup semifinal second leg soccer match between Manchester City and Manchester United at Etihad stadium in Manchester, England, Wednesday, Jan. 29, 2020.
UEFA have confirmed the outcome following a hearing held by the organisation's Club Financial Control Body (CFCB) in January.
Its current squad, assembled and financed at the cost of more than $1bn, includes 10 players for whom City paid between $47m and $76m.More news: Antarctic island hits record temperature of 20.75C
"The Adjudicatory Chamber has also found that in breach of the regulations the Club failed to cooperate in the investigation of this case by the CFCB".
UEFA had opened an investigation into City in March 2019 after German publication Der Spiegel alleged that the club's Abu Dhabi owners had inflated sponsorship agreements to comply with FFP requirements.
"If UEFA decide we did something wrong, OK, we'll be banned, we'll be punished or whatever they decide", added Guardiola in May 2018.
Financial Fair Play (FFP) was introduced by UEFA as an attempt to prevent clubs getting into serious financial difficulty by overspending.More news: Virat Kohli 'Thrilled' With New RCB Logo
The ban will come into effect from the end of this season, banning Manchester City from Uefa competition in 2020/21 and 2021/22.