Manchester City Charged with Finacial Breaches by Premier League

Manchester City Charged with Finacial Breaches by Premier League

Manchester City has been charged with over 100 breaches of financial rules after a four-year investigation. The Premier League announced the news on its website stating City broke several regulations between 2009 and 2018 and if the charges are proven the club could now face sanctions including suspension from playing games, a possible points deduction, order compensation, expulsion from the leagues and fines.

Financial Fair Play (FFP) regulations are designed to ensure that clubs compete on a level playing field and prevent them from spending beyond their means. Clubs must demonstrate that they have a balanced budget and cannot exceed certain limits on transfer spending and wages.

An investigation launched in 2018 based on leaked documents published by German outlet Der Spiegel obtained by a hacker accused the club of overstating sponsorship income from their owners instead of actual sponsors.

In accordance with Premier League Rule W.82.1, the Premier League confirms that it has today referred a number of alleged breaches of the Premier League Rules by Manchester City Football Club to a Commission

Premier League

What punishments can the independent commission impose on a club?

  • Suspend a club from playing league matches
  • Points deductions
  • Recommend to the board that league matches be replayed
  • Recommend to the board that the league expels the respondent club
  • Order compensation
  • Cancel or refuse registration of players
  • Conditional punishment
  • Order the club to pay the costs
  • Make such other order as it thinks fit

Allegedly, City did not disclose the financial compensation that was made to one of their managers over a four-year period. The suggestion is that there was a secret contract so one of the managers was getting paid much more than officially stated.

The second set of breaches described concerns the club’s alleged breaking of rules “requiring a member club to include full details of manager remuneration in its relevant contracts with its manager” related to seasons 2009-10 to 2012-13 inclusive.

The third set of breaches pertains to the club’s alleged non-compliance with UEFA Financial Fair Play regulations in accordance with the Premier League rules. This covers the period from 2013-14 to 2017-18.

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In 2020, Manchester City’s two-year ban from European football was overturned by the Court of Arbitration for Sport (CAS). The club had been given a suspension by UEFA’s club financial control body (CFCB) for “serious breaches” of club licensing and FFP regulations.

In the past when they’ve been investigated by UEFA, they’ve always insisted they have done nothing wrong. In February 2020, they were banned by UEFA from European competition for two seasons and also fined €30m.

Solhekol

The fourth section addresses allegations of violations of the Premier League’s profitability and sustainability rules during the seasons from 2015-16 to 2017-18.

Lastly, Manchester City is accused of breaking league rules that mandate co-operation and assistance with Premier League investigations. The alleged violation covers the period from December 2018 to the present.

Number of Charges

City has now responded to the accusations, with a statement released on the club’s official website reading: “Manchester City FC is surprised by the issuing of these alleged breaches of the Premier League Rules, particularly given the extensive engagement and vast amount of detailed materials that the EPL has been provided with. The Club welcomes the review of this matter by an independent Commission, to impartially consider the comprehensive body of irrefutable evidence that exists in support of its position. As such we look forward to this matter being put to rest once and for all.”

Manchester City

Read the Explainer Here

This is a serious matter for Man City

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