City stated on Friday evening that they were "disappointed but not surprised" by the decision from the adjudicatory chamber of the Club Financial Control Body.
They described the process as "flawed and consistently leaked" and said they would commence appeal proceedings with the Court of Arbitration for Sport at the earliest opportunity.
Neville, who notes that Salford City who he part-owns has benefited from mass outside investment, feels FFP is the wrong way to regulate the sport.
He said on Sky Sports: "The idea that City are not able to invest the money of the ownership I disagree with, I've always felt FFP is the wrong way to apply the financial rules.
"I've got no faith in [Uefa] whatsoever. They are a hopeless organisation.
"I think City will beat Uefa in the courts, it will be stuck in the courts for some time and City will win in the end."