Manchester City: Main Points Of Damning Judgement And Possible Sanctions

Manchester City face potentially severe sanctions after an independent Premier League commission found the club guilty of serious financial rule breaches spanning nine seasons.

The commission found that City used a series of “sham” commercial agreements and other arrangements between 2009/10 and 2017/18 to artificially inflate revenues and reduce costs by more than £900 million. According to Premier League’s statement, the commission also found that the club filed misstated accounts and concealed the true state of its finances from auditors and football regulators.

City have rejected the findings and indicated that they will appeal against the decision.

£900m funding scheme

At the centre of the judgement was a system involving commercial agreements with Abu Dhabi-based companies.

The commission found that City recorded almost £950 million in sponsorship revenue from Abu Dhabi-based companies during the period under investigation, but only £119.25 million was paid as the basic sponsorship fees. A further £830.69 million was identified as “tagged sums” paid by Abu Dhabi United Group (ADUG), the club’s owner, to City.

The Premier League said the arrangements artificially inflated City’s revenues and reduced its costs, allowing the club to appear compliant with financial regulations when it would otherwise have breached the spending limits by a substantial margin.

Mancini’s undisclosed payments

The judgement also examined payments made to former City manager Roberto Mancini through a separate arrangement involving Al Jazira, the Abu Dhabi-based club linked to City’s ownership group.

Mancini received almost £9 million in payments in addition to his Manchester City salary, but the payments were not declared to the Premier League, according to the judgement.

The commission also found that ADUG made additional payments worth £7.4 million to a City player that were not included in his contract, concealing the full extent of the club’s remuneration obligations.

The arrangement was operated with the knowledge and approval of individuals connected with the club, according to the findings.

Failure to co-operate

The commission also found City guilty of three of four alleged breaches relating to their co-operation with the Premier League’s investigation.

According to the Premier League, the commission concluded that the club “made concerted efforts to stop and frustrate the PL investigation”.

The league said City had also failed in its duties of co-operation and utmost good faith during the investigation.

What sanctions could City face?

No punishment has yet been imposed, with the sanctions to be determined separately.

Under the Premier League’s rules, the available sanctions include a fine, points deduction and other sporting penalties, with the commission having broad discretion over the punishment. In theory, expulsion from the Premier League is also among the possible outcomes.

A number of possible consequences have consequently been discussed:

• A major points deduction: A sufficiently large deduction could put City in serious danger of relegation, although there is no fixed points tariff for a case of this scale.
• Points deductions across multiple seasons: The punishment could potentially be structured over more than one campaign, depending on the eventual ruling.
• A heavy financial penalty: City could face a substantial fine in addition to sporting sanctions.
• Expulsion: The Premier League rules allow for expulsion in the most serious cases, although whether that sanction would be imposed remains unknown.
• Historical consequences: There has been speculation over whether City could be stripped of titles won during the period covered by the investigation. Such an outcome has not been announced.
• Claims from rival clubs: Other clubs could pursue compensation if they argue that City’s breaches caused them financial or sporting losses. Rival clubs are already considering potential legal action.
• Ownership implications: The case could also create wider questions around City’s ownership, particularly if sanctions or further legal proceedings have significant financial consequences.

The scale of any punishment remains uncertain, particularly because City have the right to appeal the commission’s findings. The Premier League has also stressed that the process remains ongoing and that aspects of the full decision remain confidential.

For now, Manchester City’s immediate focus will be on its appeal, while the football authorities face the separate task of determining sanctions in one of the most significant financial cases in Premier League history. Culled from Al Jazeera and The Guardian