Manchester City are beginning to run into the same squad limit problems Chelsea has faced for several seasons now. Beginning in the 2010-11 season, the Premier League required all sides to register at least eight homegrown players if they wanted to name a full squad of 25 senior players. Prior to this season, Manchester City has always found eight or more homegrown players to register but now suddenly face a major dilemma.

Should the Scott Sinclair transfer to Aston Villa be completed and Wilfried Bony be signed, Manchester City must jettison another senior player to make room for Bony on the Premier League squad. Chelsea, for example, currently only have three homegrown players (Gary Cahill, John Terry and Cesc Fabregas) so the Blues have been limited to naming a senior squad of just 20 players.

Once Sinclair is let go, Manchester City will be limited to a 23-man senior team. The Premier League’s registration rules do not include players under the age of 21 at the start of the season.

Much like UEFA Financial Fair Play (FFP), the Premier League’s squad rules were designed to create some semblance of competitive balance and promote clubs to buy domestically or develop their own academy talent. Unlike FFP, these rules actually make some sense as they are designed to help teams that promote homegrown and local talent, unlike FFP which tends to favor established clubs with wealthier supporters bases.

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The Arab owners of Manchester City have invested lots of money in what they hope provides a permanent solution to this problem and FFP. The City Football Academy campus, which formally opened last month, is a step toward the Citizens being a fully-sustainable club that seldom needs to spend the type of money that has been splashed since the Abu Dhabi takeover in 2008.

But the academy is a long-range project. At this point in time, after managing to hold on enough English players for many years, Manchester City now faces a squad conundrum. It might be in the club’s best interest to dip into the transfer market this summer and acquire one or more bright young English prospects. It is also in the club’s best interest to solve the contract impasse it currently has with English international James Milner. Were Milner to leave the club this summer, the Citizens will find themselves in Chelsea-like territory as far as squad limits are concerned.

That is something no doubt the top brass at the club want to avoid.