City were banned on Friday from European club competition for the next two seasons for "serious breaches" of Uefa's financial regulations. The Premier League champions were also fined 30m euros (£25m).
After victory at Norwich City, Klopp said: “To be honest, I feel for Pep and the players.
“They did for sure nothing wrong, they just played football and sensational football.
“Wherever Pep has been, he has helped each league to improve their football.
“But then again, we all have to respect rules. I have no idea if they (City) did or not, but UEFA sees it like they didn't. We will see what happens."
Klopp added: “It was a shock when I saw it, somebody sent me the headline.
“I have no idea how these kind of things work, but what I can say as a football coach is Man City under Pep Guardiola since I've been here play sensational football.
“I've always admired what they do and what he is doing. That will not end with this moment.
“I can imagine it is really hard at the moment for the sports people (at City).
“You trust your people, they tell you it's all fine, and then obviously UEFA see that slightly differently. Now they have to deal with it. I have no idea what will happen next.
“I saw a few things that were said, I imagine City will appeal and I imagine more things will come out because much more information will come out."