The two-year suspension of Manchester City from European football was lifted by the Court of Sport Arbitration (CAS), the court located in Lausanne said on Monday.
The decision means that the team Pep Guardiola will play in the Champions League next season.
CAS ruled that by disguising equity funding as sponsorship, City did not breach the Financial Fair Play (FFP) rules. The court also reduced a fine from 30 million euros to 10 million euros ($11.30 million) for failure to cooperate with UEFA.
“Most of the alleged violations reported by the CFCB’s (UEFA) Adjudicatory Chamber were either not established or time-barred,” said CAS in a statement.
UEFA, the governing body of European soccer, ruled in February that City had committed severe violations of the FFP and had not cooperated with its investigation.
Missing out on the Champions League would cost City, who denied wrongdoing, as much as 100 million pounds in bonus money and income from advertising, as well as matchday and other income.
The FFP regulations are designed to prevent clubs from running up big losses by spending on players. They must ensure that sponsorship deals are focused on their real market value and are legitimate trade arrangements — and not ways for owners to inject cash into a club to get around the rules.