Manchester City face possible tax inquiry over Premier League financial breaches

Manchester City could face consequences beyond sporting sanctions after being found guilty of breaching Premier League financial regulations, with the UK Treasury Committee asking HM Revenue and Customs to examine the tax implications of the case.

The Italian Enzo Maresca-managed club is the subject of an ongoing Premier League investigation into alleged financial rule breaches across nine seasons. According to Marca, citing Sky Sports, the Treasury Committee has written to HM Revenue and Customs, the UK authority responsible for tax, payments and customs, to establish whether a tax investigation has been carried out.

The request raises the possibility that HM Revenue and Customs could examine whether Manchester City paid the correct amount of tax during the seasons in which the club was found to have violated Premier League financial regulations.

No tax action has been confirmed. Sky Sports reported that the Treasury Committee wants definite confirmation that the relevant authorities are investigating what took place.

One example that could come under scrutiny is the alleged existence of two contracts involving former Manchester City manager Roberto Mancini. The arrangement was revealed by the German publication Der Spiegel in 2018 through documents published as part of the Football Leaks revelations.

Emails released at the time appeared to indicate that Mancini had two separate agreements. One was his contract to manage Manchester City, under which he was paid £1.45m. The second involved annual payments of £1.75m to a company linked to Mancini.

Mancini is currently manager of the Italy national team.

The reported contract arrangement is only one example cited in connection with the wider financial investigation. At this stage, the potential consequences extend no further than the existence of information that could prompt further examination.

The Premier League’s investigation concerns Manchester City’s conduct over nine seasons, and any sporting punishment would be considered separately from possible tax implications. The Treasury Committee’s intervention is focused on whether HM Revenue and Customs has examined the financial arrangements and payments linked to the alleged breaches.

Sky Sports said the committee’s priority was to establish conclusively whether the UK tax authority is investigating the matter, rather than to confirm that any tax offence has taken place.