Manchester City is facing potential expulsion from the Premier League for financial breaches as the “trial of the century” begins on Monday, with the Premier League champions being charged with 115 breaches of the league’s financial regulations.
However, City denies any wrongdoing and claims to have strong evidence to clear their name. If found guilty, they could face severe punishments, such as a significant points penalty or even being kicked out of the Premier League.
Everton and Nottingham Forest received points deductions last season for single breaches of the league’s profit and sustainability rules. If City is found guilty, it could lead to compensation claims from rival top-flight clubs due to their extensive success in the league over the past years.
City’s financial affairs have been scrutinised since they were acquired by Sheikh Mansour’s Abu Dhabi United Group in 2008. If the verdict goes against City, diplomatic relations between the United Kingdom and the United Arab Emirates, where Mansour is the deputy prime minister, could be strained.
Financial Fair Play Charges
The hearing, conducted by an independent commission at an undisclosed location, is not a court case and is expected to take approximately ten weeks to complete. The commission is comprised of three members appointed by Murray Rosen, who chairs the Premier League’s judicial panel. The verdict is unlikely to be announced until 2025, and the City is expected to appeal if found guilty.
Out of the 115 charges, 80 are related to breaches of the regulations between 2009 and 2018. The remaining 35 charges are for failing to cooperate with the Premier League’s investigation.
The suspicions arose from leaked documents published by the German Der Spiegel in 2018. These leaked emails suggested that City allegedly inflated sponsorship revenue from Abu Dhabi state-controlled airline Etihad and telecoms firm Etisalat by disguising direct investment from the Abu Dhabi United Group as income.
Other documents indicated off-the-books payments to then-manager Roberto Mancini via consultancy fees from a club in Abu Dhabi.
Previous Appeal
Man City overturned UEFA’s two-year ban from the Champions League at the Court of Arbitration for Sport in 2020. CAS found that most of the alleged breaches of overstating sponsorship revenue were either not proven or fell outside the five-year statutory limit for prosecution. Although no time limitation clause exists in the Premier League case, City remains confident of avoiding sanctions.
City manager Pep Guardiola stated, “I know what people are looking for; I know what they expect. I know it because I have read it for many years, but I’ve said everyone is innocent until guilt is proven. So we will see.”
Former City player Aymeric Laporte, now with Al Nassr in Saudi Arabia, claimed that Guardiola’s players were assured nothing to worry about when the news broke. Laporte mentioned that the sporting director and CEO came and told all the players and staff that Man City had not broken any rules.
A guilty verdict could potentially end Guardiola’s successful tenure at the club, which includes winning City’s first Champions League title in 2023. In the final year of his contract, the Spaniard has continually supported City’s owners but previously indicated that he would walk away if they had not been honest with him.
Severe sanctions would raise doubts about the future of Man City’s star players, including prolific striker Erling Haaland. However, if City proves their innocence, the Premier League will be criticised for being outmanoeuvred by the deep pockets of state-backed clubs.