City fought back from three goals down at halftime with a brace from Erling Haaland but could not complete the comeback.
Manchester City's first home match since being found guilty on over 100 charges of financial impropriety did not go the way the home fans hoped. Paris Saint-Germain raced into a commanding lead at the Etihad Stadium, scoring three times inside the opening 35 minutes through Desire Doue, Ousmane Dembele and Vitinha.
City were 3-0 down at the break. Enzo Maresca's triple substitution changed the complexion of the second half, and Erling Haaland pulled two goals back either side of a strike from Maghnes Akliouche that had briefly restored PSG's three-goal cushion. It was not enough, and the European champions held on for a 4-2 win.
The result adds to a difficult stretch for City off the pitch. The club faces potential sanctions, including a large fine, points deductions or even expulsion from the Premier League, after an independent commission ruled against them last month. There have also been calls for City to be stripped of trophies won during the nine-year period covered by the findings. PSG manager Luis Enrique said before the match that he hoped City would avoid such penalties, praising what the club has achieved on the pitch in recent years.
City are expected to pursue an appeal against the ruling.