Roberto Mancini's squad cost over £320m but after picking up only three points from six games, they are now the only English club who failed to record a victory in the group stages. They also managed one point fewer than Blackburn did in the 1995-96 season.
There were familiar failings for City last night with a distinct lack of creativity against a Dortmund team who rested several of their first-team players. However, Mancini was determined to use the elimination as a springboard for the rest of their season.
"We lost our chance before tonight, we tried (to qualify), but we're missing more players," said Mancini. "We had the chance to score, but if in these moments you don't score it's difficult to win. We are not in the Europa League, and for this we should be disappointed."
Asked if this might help his team in the league, he added: "This can help us for the Premier League, but we don't play in the Europa League and we wanted to try and play in the Europa League. This was our target tonight."
MATCH REPORT ON PAGE 75