This is all a ploy coming from the Spanish and Italian clubs. There's no money in their leagues but they need to keep finding income.
If it wasn't for the Champions League money then the likes of Barcelona would of gone bust however they're being threatened massively by their poor performance and lack of investment because you get paid based upon where you finish. Barcelona didn't even get through the groups this year or last year so that will be £millions lost.
It's no wonder they their own league because they'll make the rules and the rule will be you get more despite being crap. You can also bet they'll ensure that these big clubs get in automatically via 'coefficients' or something regardless of their performance.
The Champions League have already caved to pressure and will do this in a few years where wildcard clubs with high coefficients will get in no matter where they finish in their leagues, it's all about the money!
I don't think City will benefit or be greatly bothered, we just can't afford not to be part of the gang and that's why we were panicked into participation last time, and probably again this time.