This does not mean that City is right, because what City is fighting for is basically any owner should be able to put up any amount of money they want, and that is definitely not the way to go and would leave a lot of clubs in big debt if that was allowed, FA is trying to make sure that they have some limitations to make sure clubs can sustain. However, I also believe that FA is putting a too short of a lead as well, they are just making it super hard to compete, and that is not going to be all that possible if you ask me.
When there is a wealthy owner and is able to buy many great players for me it is not a problem, because the problem is when they exceed the limits that have been set. Maybe something like that makes Manchester City violate but anyway, as long as they don't have a big debt and still have healthy finances then I think it's not a problem either. Indeed, I don't really know the problem that actually happened, so there are rumors that Manchester City will get punished. But as far as I remember, it seems that the problems at Manchester City have been raised also from the previous season or from a few seasons ago. But anyway, the reality is Manchester City is still fine because anyway, I think Manchester City also did not do any cheating like for example Juventus who cheated about the score or something like that there.