Manchester City expected to appeal Premier League financial breaches ruling

Manchester City are expected to appeal an independent commission’s finding that the club breached Premier League financial regulations, beginning the next phase of a case that has lasted several years.

The club must submit its appeal by today’s deadline after being found guilty of serious violations covering nine seasons between 2009 and 2018.

The commission ruled that City had used “sham” commercial contracts as part of arrangements which overstated revenue and understated costs by more than 900 million pounds.

City have firmly rejected the allegations throughout the process and insist they possess evidence that will prove they did not break the rules.

One anticipated line of argument is that some of the sponsorship deals under scrutiny were partly financed by the government of Abu Dhabi, rather than by the club’s owners.

The appeal will be governed by the Premier League’s new fast-track rules. Those regulations require a hearing to be held within 12 weeks of an appeal being lodged, with a ruling expected within 30 days of the hearing concluding.

However, City are expected to dispute the use of the fast-track process. Their position is that the rules were not in force when the club was charged in February 2023.

The charges followed a four-year Premier League investigation into City’s finances. The club has consistently denied any wrongdoing during the investigation and subsequent proceedings.

The independent commission also found City guilty of most of the allegations that they had failed to co-operate with the Premier League’s investigation.

Wider consequences

The outcome could have implications beyond any punishment eventually imposed by the Premier League.

Rival clubs, players and agents may consider whether the commission’s findings give them grounds to pursue compensation claims. Sports lawyers have warned that the legal consequences could continue for years as the appeal and any connected claims progress.

The findings have also attracted political attention.

Meg Hillier, chair of the UK Parliament’s Treasury Committee, has written to HM Revenue and Customs to ask what steps it plans to take after the commission’s ruling.

Hillier contacted HMRC permanent secretary JP Marks after the decision stated that City had committed well over 100 separate breaches of Premier League rules across several seasons.

The commission’s conclusions and the club’s expected appeal mean the case is set to continue through a process that could involve both football regulators and other legal authorities.