A hearing by an independent commission to examine alleged financial breaches by Manchester City is getting under way – with the club facing potential expulsion from the Premier League if found guilty.
The club are facing 115 charges laid by the Premier League and are now the subject of a hearing which is being held in private.
A football finance expert told Sky News that City could face a points deduction of “60, 80, 100 points” if they are found to have broken the rules.
Here, we look at what is at stake – and the size of any potential punishment.
What is the nature of the charges?
The greatest proportion of the charges relate to rules that require clubs to provide accurate financial information, and which City are alleged to have breached.
They include details concerning the accuracy of information about sponsorship deals and player and manager payment.
There are also allegations of breaches of rules requiring clubs to comply with UEFA Financial Fair Play (FFP) regulations – and the Premier League’s own profit and sustainability rules (PSR).
They are also accused of failing to co-operate with the league’s investigation.
In all, there are charges relating to every season between 2009-10 and 2022-23. During that period, City won the Premier League title seven times, the FA Cup on three occasions, six League Cups and a Champions League.
City have strongly denied the allegations and said they welcomed the opportunity for an independent commission “to impartially consider the comprehensive body of irrefutable evidence that exists in support of our position”.
How long will this take – and what could happen to City?
Do not expect a decision soon. Reports say the hearing could last at least two months with a final decision not made public until next year.
There may also be appeals, although experts think this is unlikely.
But City, whose owner is United Arab Emirates deputy prime minister and vice president Sheikh Mansour, face a huge points deduction or even expulsion from the league if found guilty.
One expert told Sky News a deduction of points could run as high as 100, particularly when compared with punishments previously handed out to other clubs in the league who have faced far fewer charges.
Other possible measures being suggested by commentators include City facing points deductions across multiple seasons rather than being hit for just one campaign.
A guilty verdict for City could also prompt a slew of compensation claims from other clubs.
The Premier League handbook states a commission has the power to impose “any combination of the foregoing or such penalty as it shall think fit” – leaving open a wide range of options.
Manchester City owner Sheikh Mansour. Pic: Reuters
Have City been in trouble before?
In February 2020, they were banned from the Champions League for the next two seasons for “serious breaches” of UEFA’s FFP regulations.
However, within a matter of months the ban was overturned on appeal at the Court Of Arbitration For Sport (CAS).
The club were still ordered to pay a €10m (£8.4m) fine – but this was reduced from the initial €30m (£25.3m) penalty.
City proudly display a list of their recent honours outside their Etihad Stadium. Pic: Reuters
Have clubs faced big punishments before?
Yes. Last season Everton were twice docked points for breaching the Premier League’s PSR.
Nottingham Forest were also deducted four points during the last campaign.
In 2012, Rangers found themselves kicking off the new season in the fourth tier of Scottish football after liquidation followed administration and the failure to reach agreements with creditors.
And in 2006, a scandal rocked the top flight of Italian football when a number of big clubs were accused of selecting favourable referees for their matches.
Juventus were handed the strongest punishment, being stripped of two Serie A titles and relegated to the second tier.
Read more on Sky News:
‘Highly unlikely’ English teams face European ban
Premier League’s first female ref reflects on career
What if City are cleared?
If City’s position is vindicated, it is likely to lead to serious questions about the Premier League’s ability to effectively govern its clubs and enforce financial regulations.
This is at a time when football is on course to become subject to independent regulation, something which is widely supported by supporter groups.
Other clubs who have faced punishment in the past will also want to pick through the details of the verdict and may have further questions about how the rules are being applied.
What do the experts say?
Kieran Maguire, a lecturer in football finance at the University Of Liverpool, told Sky News how previous verdicts involving other clubs would suggest a “major breach” by City if they are found to have broken the rules.
He said: “When we had the recent Nottingham Forest verdict, the commission concluded that was a minor breach of the Premier League’s rulebook – and the Premier League rulebook itself is unrestricted in terms of the nature of punishment.”
Mr Maguire added that because the City allegations cover a longer period and “effectively the accusation that is being made that Manchester City have misrepresented their financial records”, then that “would be deemed to be a major breach if found guilty”.
“Therefore, a points deduction, which is the most appropriate tariff, is likely to be in senior numbers of points – 60, 80, 100 – which would effectively relegate the club rather than formally expelling them from the Premier League,” he added.
On the possibility of appeals being made by the Premier League or City depending on the verdict, Mr Maguire said: “I think the scope to have an appeal is very, very narrow.
“Appeal is unlikely, but both parties have got so much vested in success you would expect them to consult their legal advisers and take a view from there.”
Source Agencies
