The hearings into Manchester City‘s 115 alleged violations began on Monday and are expected to last several weeks.
This case is unprecedented, and if the club is found culpable, the penalties could be severe or even indefinite. Possibilities include relegation, stripping of titles, transfer bans, and point deductions.
Despite the seriousness of the situation, Pep Guardiola and his team are maintaining their focus. Guardiola commented earlier this season on the potential impact of the situation, stating, “No, we have been talking about that for three or four years. We know it is going to happen, we accept it and focus on our matches.”
In the meantime, MEN Sport has categorized the alleged breaches into five distinct groups.
Group 1 (50 breaches) – Acting in Good Faith
These breaches pertain to the requirement to provide accurate financial information that honestly represents City’s finances. Key concerns include the reporting of revenue, especially from sponsorships, and operating costs. The Premier League Handbook defines ‘Associated Party Transaction’ as any transaction of £500,000 or more between a club and its associated parties, which includes players, managers, or senior officials. The allegations suggest that City and their sponsors manipulated contracts to evade Premier League regulations. According to Der Spiegel, the club allegedly deceived regulators by channeling funds through sponsors connected to Abu Dhabi owner Sheikh Mansour, thus inflating their commercial income to meet financial sustainability requirements.
Group 2 (24 breaches) – Player and Manager Remuneration
These breaches involve failing to provide comprehensive details of manager and player remuneration. The Premier League alleges that City did not comply with rules requiring written documentation of employment contracts for managers and players, including proper registration and adherence to standard clauses outlined in the Premier League Handbook.
Group 3 (5 breaches) – UEFA Financial Fair Play Regulations
The Premier League must ensure compliance with UEFA’s Financial Fair Play (FFP) regulations. In 2020, UEFA imposed a two-year European Competition ban and a £30 million fine on City for breaching club licensing and FFP rules. However, the Court of Arbitration for Sport (CAS) overturned this decision on appeal, citing some alleged offenses as time-barred, resulting in a reduced £10 million fine. Unlike UEFA, the Premier League does not have time limitations for bringing charges, meaning City cannot use this as a defense. The alleged breaches occurred between the 2013/14 and 2017/18 seasons.
Group 4 (6 breaches) – Profitability and Sustainability
The Premier League accuses City of violating profitability and sustainability rules from 2015 to 2018. Clubs are required to submit annual accounts, along with directors’ and auditors’ reports, to the Premier League before March 1st each season.
Group 5 (30 breaches) – Cooperation with the Premier League
These alleged breaches cover the period from the 2018/19 season to the present (2022/23). It is claimed that City failed to fully cooperate with the Premier League’s investigations by not providing necessary documents and information in good faith. In summary, the allegations suggest that City attempted to circumvent the rules.
