City's playing against Lazio for final (8)
I believe the answer is:
santiago
'city's' is the definition.
(Santiago is an example)
'playing against lazio for final' is the wordplay.
'playing' indicates an anagram.
'for final' says to take the final letters.
The last letter of 'lazio' is 'o'.
'against' with letters rearranged gives 'santiag'.
'santiag'+'o'='SANTIAGO'
(Other definitions for santiago that I've seen before include "Chilean capital" , "City" , "Chile's capital" , "Capital of Chile" , "South American capital" .)