Manchester City appeal £830m funding ruling as potential £1.4bn legal bill looms

Manchester City have formally appealed against a Premier League commission ruling that the club used £830m (about R18.2bn) in “sham” commercial arrangements to conceal owner funding.

The club confirmed on Friday that it had submitted its challenge before the league’s deadline, rejecting the commission’s findings and arguing that the verdict contains fundamental legal and factual errors.

A leaked video message to staff saw chief executive Ferran Soriano deliver a forceful defence of City’s position, describing the ruling as a “conspiracy theory” based on a “single false accusation”.

“Our lawyers have filed an appeal setting out that the opinion contains clear material errors of law, principle and fact, and is unsafe,” Soriano said.

“Remember, we have been here before. In 2020 we were wrongly ruled against for many of the same issues. We appealed to an independent body in CAS and we won.”

City’s legal team is expected to argue that sponsorship payments came directly from state-backed commercial organisations linked to the Abu Dhabi government, rather than from Sheikh Mansour’s private investment vehicles.

That argument was rejected by the original commission, which labelled it an “after-the-fact explanation” intended to conceal disguised funding.

However, legal experts have warned that City cannot rely on the same process used in their 2020 case. While the earlier dispute involved UEFA, Premier League rules require domestic arbitration to remain within the league’s own system, meaning the Court of Arbitration for Sport has no jurisdiction.

The three-person appeal panel will also be unable to consider new evidence or hear additional witnesses. Its role will be limited to deciding whether the original tribunal made errors of law or incorrectly applied the regulations based on the existing evidence.

The appeal has triggered one of the most significant legal processes in English football. Under the Premier League’s updated disciplinary rules, the hearing must be completed within 12 weeks, before Christmas. The panel will then have 30 days to issue a binding decision, with the verdict expected in January 2027.

The Football Association added to the pressure on City by saying on Friday that the commission’s findings had “significant implications for the integrity of the game”.

Although the Premier League has authority over league titles, the FA said it was considering whether City could be stripped of domestic cup honours won during the alleged breach period from 2009 to 2018.

If the appeal fails, the Premier League board will impose sanctions. Expulsion or a points deduction leading to relegation could be applied during the 2026/27 season, with possible consequences for broadcast rights, player contracts and European qualification places.

The financial consequences could extend well beyond lost Champions League income. Clubs relegated between 2009 and 2018, including QPR, Swansea and Stoke, could pursue claims for lost television revenue and reduced squad values.

Other Premier League clubs may seek compensation for merit payments lost after finishing behind City, while managers and players could bring claims relating to bonuses linked to titles or European qualification.

Sports law experts estimate the combined civil liability could exceed £1.4bn, placing further strain on Manchester City’s finances.