The Etihad Stadium outfit are still top of the league but have relinquished a six point lead, and have not looked as convincing of late.
With Manchester United hot on their heels, the German feels that City have a lot to lose.
“I think if they don’t win the league, psychologically it will be a big blow; and don’t forget they got knocked out of the Champions League,” he told Mirror Football.
“They were in a hard group, but everyone expected them to go through and they got knocked out there. Obviously they lost the semi final against Liverpool in the League Cup and they’re out of the FA Cup.
“The consolation prize is the Europa League, but obviously it’s not what they want to win with the money they’ve spent.
“So if they don’t win the league this year, I think it’ll be a big blow and it could affect them, especially with financial fair play coming in you don’t know how much they’ll be able to spend over the next few years,” he concluded.
By Gareth McKnight