City were found guilty of seriously violating the rules of financial fair play and were banned from participating in the Champions League and the Europa League for two seasons.
The Blues maintain their innocence and will appeal the decision before the Arbitral Tribunal for Sport.
If the ban is upheld, provided the Premier League season resumes, United could secure qualification for the Champions League by finishing the campaign in fifth place.
Nevertheless, Rashford revealed that he was disappointed when the decision was announced because of his friendship with the club’s players.
When asked if he was satisfied with the ban, he replied to BT Sport: “No, I have friends who play for City.
“So it’s not nice to see it happen to them. “
The English international was also asked if he thought City boss Pep Guardiola would be sacked by a young United fan.
Guardiola’s contract is set to expire at the end of next season.
He said, “This is a difficult question.
“No, Pep is a top manager. I think City is lucky to have a manager like him. “
A young City fan present urged Rashford on his thoughts on United rivals.
The striker added, “No, I don’t like Man City.
“It’s obviously difficult because there are people in my family who support City and that’s only one of those things when we talk about football, we don’t really get involved. “
“I’ve always been a United fan as soon as I found out that United wanted me to train there.
“I just fell in love with the club since then. “