The Premier League has spoken as Manchester City have been found guilty. Now I want to explain what that actually means, because a lot of what you will read on this app today is wrong.
On Tuesday, the Premier League confirmed that an independent Commission found City guilty of every charge relating to serious breaches of its financial rules between the 2009/10 and 2017/18 seasons. They were also found guilty of most of the charges about failing to co-operate with the League's investigation. The charges were first brought in February 2023, and it took a four-year investigation and a 42-day hearing to get here.
In plain English, the Commission found three things. City arranged "sham" contracts with some of its commercial partners, meaning the paper said one thing while the real agreement was something else. Those deals made the club's revenue look bigger and its costs look smaller than they really were.
Because of that, the accounts City filed were misstated, and the true state of the club's finances was hidden from its auditors and from football's regulators. And City were significantly over both the Premier League's and UEFA's spending limits.
But guilty is not the same as punished, and this is the part people are skipping. The sanctions will be decided separately at another private hearing. The possible outcomes range from a heavy fine to a points deduction, and even relegation.
City also have until Friday, 2 October, to appeal. So as of today, nobody has been relegated and not a single point has been deducted.
Now, this is where it gets interesting for lawyers. In 2020, the Court of Arbitration for Sport overturned UEFA's two-year Champions League ban on City, largely because many of the allegations were too old to be pursued under UEFA's time limits, and the fine was cut to β¬10 million. This case is different. It sits under the Premier League's own rules, and an appeal goes to a Premier League Appeal Board, not to CAS. The route that saved City in 2020 is not the same route this time.
The co-operation finding matters more than people think. In almost any disciplinary process, a party found to have obstructed the investigation does not usually get much sympathy when the punishment is being decided. Three of the four alleged breaches of the duty to co-operate were upheld.
And City may not be the only ones heading to court. Other clubs have already reserved the right to seek compensation. Think about the clubs that were relegated, missed out on Europe or lost prize money in those nine seasons while City were operating outside the rules. I would not be surprised if their lawyers are already reading this decision line by line.
In September 2024, Pep Guardiola said the independent panel would decide and City would accept the sentence. The club's first reaction today was that it is "disappointed and surprised." On Friday, we will find out whether the club agrees with its manager.
My name is Ajoje. I am a FIFA Licensed Agent and International Sports Lawyer. I write on the Law and Business of Football, a lot. Repost and Follow if you want to read more posts like this.
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