Manchester City faces an uncertain future after the decorated English soccer club was found guilty of systematically breaking the Premier League's financial rules for nearly a decade. The verdict — delivered by an independent disciplinary commission — leaves open an array of sanctions, including a fine, points deduction or even expulsion from the Premier League. City could also face possible compensation claims from rival teams.
The club, which is owned by the Abu Dhabi-controlled City Football Group, has rejected the verdict and promises a relentless campaign to clear its name. Here's a look at what's next in one of the biggest scandals in English soccer history: Manchester City can appeal the verdict and has insisted it will. "The Club is innocent of the accusations made by the Premier League and a comprehensive body of irrefutable evidence exists in support of all of its positions," Manchester City said in a statement.
"The Club will therefore be relentless, and where necessary proactive, in any and all appropriate regulatory and legal forums." To make its appeal, City would need to send an email to the chair of the independent commission's three-person panel, who would then appoint a new appeal board — also consisting of three people, one of whom "shall have held judicial office," according to the Premier League handbook. The board will then schedule a hearing that should finish within 12 weeks after the appeal is filed and not exceed five consecutive days. City’s punishment will be addressed in a separate, confidential hearing with the independent commission.
The Premier League statement didn't mention whether sanctions can be imposed before the decision of the appeal is reached, only that it was the league's intention that the process is concluded "as soon as possible." According to the Premier League, the independent commission could issue a reprimand, fine, suspension, points deduction or, in the worst case, expel the club from the competition. Clubs have been expelled from lower leagues in England but never from the Premier League. A club that is expelled from the Premier League could apply for membership in the English Football League, which runs the three divisions below the Premier League: the Championship, League One and League Two.
The EFL's regulations say it "could be asked to accommodate any former Premier League Club(s) in League Two." The biggest points deduction handed to a Premier League team was 10 to Everton in 2023, for overspending in one three-year financial period. That deduction was later reduced to six after an appeal. City’s breaches are much more widespread and included a refusal to cooperate, unlike Everton.
Separately, the Independent Football Regulator — a body established by the British government last year to set governance standards in English soccer — could intervene in the City case. The new regulator is independent of English soccer authorities and has the power to remove club owners if they are found unsuitable. "The independent commission’s decision raises serious issues," IFR chairman David Kogan said on Wednesday.
"The IFR has powers to assess the suitability of owners, directors and executives and we will use these powers where appropriate, in the interests of protecting the sustainability, honesty and integrity of English football where there is clear evidence of wrongdoing by individuals," he said. Kogan said the IFR was awaiting further developments in the ongoing proceedings between City and the Premier League. The Manchester City case is a disciplinary proceeding, not a criminal investigation.
However, some have suggested that British authorities also should look at matter. "If accounts have been falsified and auditors have been misled, then it is potentially a criminal matter," Lord Cruddas, a Conservative peer, told the BBC. "The auditors will call in the police, directors are personally liable for any fraud of a UK company even if it is foreign-owned." According to the Fraud Act of 2006, individuals can face up to 10 years in prison if they are found to have dishonestly made a false representation with the intention of making a gain or avoiding a loss.
There have been no reports of any criminal investigation in the case. No club has publicly announced its intention to make a compensation claim based on the impact of City's rule-breaking. However, the BBC has reported that a number of clubs had started seeking advice over whether they would have a case for financial compensation, before the verdict had been announced.
A precedent was set this year when Everton was ordered to pay more than 35 million pounds ($47 million) in compensation to Burnley, which successfully argued to a disciplinary commission that it would have survived relegation — at Everton’s expense — in the 2021-22 campaign had its rival been given its six-point penalty for the financial breaches that season. In City's case, top teams could argue they lost out on titles or Champions League qualification — worth tens of millions of dollars each season — because of City's conduct, and weaker teams could claim defeats to City's expensively assembled squads contributed to relegation or lower finishing positions in the league standings, and therefore reduced prize money. On Monday, Ex-Tottenham and current United States manager Mauricio Pochettino expressed sadness over a lack of "sporting justice" in the reported verdict.
"If it’s true that the 114 rules were broken, then we lived through a period of deception," said Pochettino. "So, whatever the punishment ends up being … I don’t know. It’s impossible to go back.
I think a lot of damage has been done." The Associated Press contributed to this report.
