The long-awaited hearing into 115 charges against Manchester City for alleged breaches of the Premier League’s financial rules has got underway in a case that could have potentially game-changing outcomes and “unlimited repercussions” for the northwestern giants.
In Feb 2023, the Premier League charged City for numerous rule breaches exposed during a four-year investigation dating back as far as the 2009-10 season. Over in the 13-years leading up to 2023, City secured seven Premier League titles, three FA Cups, five League cups and the Champions League – ensuring ann enviable legacy of domestic dominance that is now potentially in jeopardy.
Frustratingly little information about the charges has come into the public domain, though they broadly fall into four categories, namely (1) that City failed to provide an accurate view of the club’s financial position, (2) breached financial fair play regulations, (3) did not give full details of remuneration paid to players/managers, and (4) failed to cooperate with the investigations.
The London hearing is expected to last until at least mid-November. Given that the club’s consistently denied all wrongdoing and claims to have evidence that puts them in the clear, we can expect City to put up as staunch a fight to defend their titles in court as they would on the pitch, Whether it is sufficient to give them a clean sheet on all 115 charges remains to be seen, as of course does the verdict, and any potential punishment.
The three-person commission can bring potentially unlimited sanctions, including fines, relegation, transfer embargoes, points deductions, and even stripping titles. Beyond the immediate ramifications for the Club, the governance of the wider league will be under increased scrutiny, with calls for an independent football regulator having already grown louder.
Everton recently admitted to having spent over £20 million defending charges in connection with its own financial fair play breaches. City’s coffers are considerably deeper, while the potential consequences – reputational and financial – of being stripped of points, or even titles, are also greater, which means this case will be fiercely contested in the courts.
Whatever the verdict, either side is also bound to appeal, so expect this one to go to extra time.
Contact our Sports Law and Corporate & Commercial expert:
David Little is a Partner at Bishop & Sewell in our expert Corporate & Commercial team. If you would like to contact him, please call on either 07968 027343 or, 020 7631 4141 or email: company@bishopandsewell.co.uk.
The above is accurate as at 19 September 2024. The information above may be subject to change.
The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.
