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Premier League clubs are pressuring the league to impose a sanction beyond a single-season relegation for Manchester City after the club was found guilty of more than 100 financial rule breaches, with an appeal hearing and potential sanctions decision expected by the end of January.
Manchester City were found guilty of the vast majority of 115 charges of financial rule-breaking, and rival Premier League clubs are now pushing for a punishment that would keep the club out of the top flight for more than one season.
Rival clubs seek harsher City punishment
Executives at several clubs have told the Guardian that a points deduction relegating City to the Championship for a single season would be insufficient given the scale of the offences. An independent commission described City's conduct as involving a disguised funding scheme and sham commercial deals. One club source said: Relegation to the Championship for one season would be insufficient.
The source added: The commission has to arrive at a punishment that is proportionate for years of sustained and deliberate cheating, as well as providing a strong deterrent to it happening again. The clubs have no direct role in the sanctioning process, but their strong feelings show the pressure the Premier League faces as it tries to close the case.
A sanctions hearing will determine City's fate, but it is pending the outcome of the club's appeal, which will be heard by a newly convened independent panel. The appeal hearing must be concluded within 12 weeks of Friday's deadline for it to be submitted. The panel then has a further 30 days to deliver its judgment, meaning a decision should be reached by the end of January next year.
The sanctions hearing could take place at the same time, though it will not be published until the appeal outcome is known. City could also appeal against any sanctions imposed by the commission. The club may further delay the process by arguing that the Premier League's new expedited timescales should not apply because they were introduced only this season while the charges against City are historic. City have already succeeded in delaying the process.
Premier League prepares sanctions case
As prosecutor, the Premier League can petition for its preferred punishment at the sanctions hearing, with City also pleading their case before the commission decides. The Premier League's position on sanctioning will be taken independently of the clubs by its board of directors: chair Alison Brittain, chief executive Richard Masters, and independent non-executive directors Mai Fyfield, Dharmash Mistry and Matthew Ryder KC.
The commission has a wide range of sanctions available, including points deductions, transfer embargoes and expulsion from the Premier League. Given the scale of City's offences, the independent panel said there are no comparable precedents. City say they are innocent of the accusations made by the Premier League and that a comprehensive body of irrefutable evidence exists in support of all of its positions relating to this case.
In the first successful profitability and sustainability rules prosecution, Everton were found to have overspent by £19.5m three years ago. The Premier League pushed for a 12-point deduction at the sanctioning hearing, and the independent commission ultimately imposed a £10m fine. Burnley were awarded £35m at an arbitration hearing earlier this year after suing Everton over their PSR breach, which Burnley claimed led to their relegation at the end of the 2021-22 season.
Everton case and compensation claims
That decision has set a precedent for clubs claiming compensation after regulatory offences. Many clubs are calling for a far more severe punishment for City because the commission concluded that without hugely inflated income, City would have breached Premier League and Uefa spending limits in multiple seasons. The Premier League is also eager to prevent further mass litigation against City by rivals seeking financial recompense.
Manchester United, Arsenal, Tottenham and Liverpool all reserved their rights to sue City in the event of a guilty verdict two years ago, and have already held informal conversations about whether to pursue a claim now that the judgment has been published. While those clubs will make individual decisions, the extent of City's punishment could prove critical to their thinking.
Sheikh Mansour and Khaldoon al-Mubarak have been Manchester City's owner and chair respectively for the whole period covered by the rule breaches. City maintain they are innocent of the accusations, and the case continues to face legal and procedural hurdles before any final sanction is confirmed.
Premier League Financial Rule Breaches Sanctions Hearing Relegation
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