Their 4-3 extra-time defeat to Al Hilal marks a low point for Pep Guardiola and follows a year filled with setbacks in domestic and European competitions. The Club World Cup was seen as a chance to reset and add another trophy, but instead it has intensified scrutiny on the squad and its future.
Guardiola is often accused of spending his way out of problems, but City had already done the bulk of their transfer business before heading to the United States.
Tijjani Reijnders, Rayan Ait-Nouri and Rayan Cherki were signed with the intention of becoming regular starters. The idea was to bed them in, go deep in the tournament, then gear up for 2025-26.
That plan was derailed by Al Hilal, and while another marquee signing can not be ruled out in response, it is not a priority. Sources indicate that the only area under active recruitment is right-back - with Tino Livramento their primary target.
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The focus outside of that is who leaves the club in the coming weeks.
City are expected to streamline the squad this summer. Guardiola does not want a bloated dressing room, and several players are under serious consideration for departure.
Among those are Jack Grealish, John Stones, Ilkay Gundogan, Kalvin Phillips, Kyle Walker and James McAtee.
There is also speculation around goalkeeper Ederson, who had a disappointing showing in the Al Hilal defeat. He is admired by clubs in Saudi Arabia, but City have publicly suggested he is staying.
Grealish is the most high-profile, and his departure is almost certain. Interest from abroad is growing, and the player has been told he needs to be involved every week at a high level if he wants to push himself back into the England squad. He would lean towards a stay in England if the right move was on offer.
A loan move is currently seen as more feasible than a permanent sale, due to the financial complexity surrounding any deal. Grealish cost £100 million and is on £350,000 per week. Newcastle, Everton and Tottenham have expressed interest, while Napoli and AC Milan have made contact from Serie A.
Defender Stones is attracting attention from former club Everton, and Brighton are also monitoring his situation. Talks with the player are expected soon to determine his preference on how they move forward.
Gundogan, who was re-signed last summer, has attracted enquiries. While he was originally expected to play a small, impactful role last season, he ended up being used frequently because of injury problems in the side. City have long considered offering him a non-playing role when he retires, but for now options in Saudi Arabia, Qatar and Turkey are landing.
Midfielder Phillips, meanwhile, has become a forgotten man and is expected to be moved on. He recently underwent surgery, but a transfer before the window closes remains the goal.
McAtee is also set to leave. The talented youngster has interest from five Bundesliga clubs, with Bayer Leverkusen holding long-term interest that has always been of interest to him. There is interest within England, too.
Phil Foden’s role remains delicate, but he is too iconic to be considered for transfer. After a difficult season, there are doubts about Guardiola’s trust in him but the player is committed to reclaiming a key starting role next season.
Elsewhere, veteran defender Walker will leave, with Everton in contact, and Kevin De Bruyne has already signed for Napoli.
It is a big summer of change as City are transitioning to a new era. Now, it is about ensuring they are ready for the start of the Premier League season in August.