Why are City facing action now and how will they react?
Q AWhat punishments could Manchester City face? The Premier League’s rules effectively allow it to reserve the right to strip City of titles, hit them with points deductions and even expel them from the competition. Charges levelled at the club are unprecedented and the Premier League’s handbook gives it enough wriggle room to decide on any proportionate punishment. Category W.51 in the rules details how breaches can lead to the commission making any “such other order as it thinks fit”. Murray Rosen KC is likely to chair the independent panel hearing the claims. The rest of the panel is yet to be decided and the process is likely to take months.
Uefa had pursued a narrower case against City before banning the club from the Champions League in February 2020. The club were able to overturn the ban via the sporting appeal courts. This time experts say the charges are more severe. As far as the Premier League is concerned, we are in uncharted territory. Points deductions have been few and far between since Middlesbrough suffered a controversial relegation in 1996-97 with a three-point deduction for “illegally postponing” a fixture. The closest precedent to City’s case is perhaps Juventus, who were recently deducted 15 points following an investigation into their past transfer dealings.
Stephen Taylor Heath, head of sports law at JMW Solicitors, said: “It is impossible to predict the sanction but there may be an initial hearing on whether the charges are upheld and then a further hearing on a possible sanction. Any penalty must be within the panel’s powers set out in section W.51 but should also be proportionate, while any appeal may relate to findings in relation to the allegations and/or the punishment.”
Q
What have City been charged with by the Premier League and how does this differ from the Uefa investigation?
A
Both the Premier League and Uefa investigations into financial doping came after the Football Leaks scandal – but the English top tier’s probe is more extensive in its scope. The catalogue of new charges covers 14 seasons from 2009-10 to the current campaign. It is a wider timescale to Der Spiegel’s claims in November 2018, partly because of City’s apparent lack of co-operation. City breached rules requiring them to provide
“accurate financial information that gives a true and fair view of the club’s financial position”, the Premier League says.
As well as breaching Uefa financial fair play regulations from 2013-14 to 2017-18, the club are accused of breaking rules on Premier League profitability and sustainability from 2015-16 to 2017-18. There is a clear crossover, however. The Der Spiegel documents, allegedly obtained by illegal email hacks, alleged £59.5million that was supposed to have come from City’s principal sponsor, Etihad Airways, was paid directly to the club by the Abu Dhabi United Group. Der Spiegel also alleged that City set up a secret scheme called “Project Longbow”, which effectively hid about £40million in payments to players. Der Spiegel had alleged Roberto Mancini, the City manager between 2009 and 2013, received secret payments through a shadow contract via a consultancy arrangement.
Q ABoth City and Kieran Maguire, a lecturer in football finance at the University of Liverpool, say there was a clear political advantage for the Premier League to announce the conclusion of the investigation in the week that the Government was due to announce its White Paper on football regulation. Whitehall sources said the paper was due to be published in a fortnight or so. But it had been previously expected this week.
Insiders at the club also feel it is part of a strategy by the Premier League to show it is capable of adequate governance.
Will City appeal again?
Q
AIs the timing of the investigation’s findings significant?
There is no mention of an appeal from City’s lawyers as the club still hope to escape serious punishment. City previously fought their Champions League ban from Uefa via the Court of Arbitration for Sport in Switzerland. Despite watering down the punishment in 2020, the appeal court concluded the club should be “severely reproached” for showing “blatant disregard” to FFP investigators. However, under Premier League rules, the club cannot appeal against any sanction via Cas as the European court is not recognised by the clubs. Instead, City would have to pursue options via London law courts.
Leading sports lawyers explained how the case against City could not be appealed to Cas as “the rules of the Premier League constitute a contract between it and the clubs”. “All clubs have accepted such rules, including Manchester City,” said sports law expert Gregory Ioannidis.