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Manchester City faces an uncertain future after the decorated English soccer club was found guilty of systematically breaking the Premier League's financial rules for nearly a decade.
Manchester City faces an uncertain future after the decorated English soccer club was found guilty of systematically breaking the Premier League's financial rules for nearly a decade.
City could also face possible compensation claims from rival teams, while its ownership — the Abu Dhabi-controlled City Football Group — is coming under increasing scrutiny. The club has rejected the verdict in a case that dates to 2018 and mainly covers its financial dealings from 2009 to 2018, and promises a relentless campaign to clear its name. City can appeal the verdict and has insisted it will.
"The Club is innocent of the accusations made by the Premier League and a comprehensive body of irrefutable evidence exists in support of all of its positions," City said in a statement. "The Club will therefore be relentless, and where necessary proactive, in any and all appropriate regulatory and legal forums.
" To make its appeal, City would need to send an email to the chair of the independent commission's three-person panel, who would then appoint a new appeal board — also consisting of three people, one of whom "shall have held judicial office", according to the Premier League handbook. The board will then schedule a hearing that should finish within 12 weeks after the appeal is filed and not exceed five consecutive days.
City's punishment will be addressed in a separate, confidential hearing with the independent commission. The Premier League statement didn't mention whether sanctions could be imposed before the decision of the appeal was reached, only that it was the league's intention that the process be concluded "as soon as possible". According to the Premier League, the independent commission could issue a reprimand, fine, suspension, points deduction or, in the worst case, expel the club from the competition.
A club that is expelled from the Premier League could apply for membership in the English Football League, which runs the three divisions below the Premier League: the Championship, League One and League Two. The EFL's regulations say it "could be asked to accommodate any former Premier League Club in League Two". The biggest points deduction handed to a Premier League team was 10 to Everton in 2023, for overspending in one three-year financial period.
That deduction was later reduced to six after an appeal. The Man City case is a disciplinary proceeding, not a criminal investigation.
However, some have suggested that British authorities also should look at the matter.
"If accounts have been falsified and auditors have been misled, then it is potentially a criminal matter," Lord Cruddas, a Conservative peer, told the BBC. "The auditors will call in the police, directors are personally liable for any fraud of a UK company even if it is foreign-owned. ", individuals can face up to 10 years in prison if they are found to have dishonestly made a false representation with the intention of making a gain or avoiding a loss.
City sponsor Etihad Airways considers legal action Etihad Airways, City's main sponsor, was considering legal against the Premier League for the way the investigation findings were communicated, Sky News reported late on Wednesday. Sky News quoted an Etihad statement saying "we stand with the club", adding that the Abu Dhabi-based airline said it would "seek the relevant legal counsel on the options and recourse available to protect its interests … at no time did the Premier League reach out to or engage with Etihad in the process associated with the commission's opinion".
No club has publicly announced its intention to make a compensation claim based on the impact of City's rule-breaking. However, the BBC has reported that a number of clubs had started seeking advice over whether they would have a case for financial compensation, before the verdict had been announced.
A precedent was set this year when Everton was ordered to pay more than 35 million pounds in compensation to Burnley, which successfully argued to a disciplinary commission that it would have survived relegation — at Everton's expense — in the 2021–22 campaign had its rival been given its six-point penalty for the financial breaches that season. In City's case, top teams could argue they lost out on titles or Champions League qualification — worth tens of millions of dollars each season — because of City's conduct, and weaker teams could claim defeats to City's expensively assembled squads contributed to relegation or lower finishing positions in the league standings, and therefore reduced prize money.
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