Frank Christian
The ongoing dispute between the Premier League and Manchester City over alleged breaches of competition rules reached an initial hearing in September 2024. This confrontation has been brewing since the Premier League issued formal charges against City in February 2023, amid the club’s dominance in recent league seasons.
Manchester City has consistently denied the charges, claiming to have substantial evidence supporting their case. This legal battle is distinct from City’s ongoing challenge regarding the league’s rules on Associated Party Transactions (APT).
In the meantime, other clubs like Everton and Nottingham Forest have experienced point deductions for violations relating to Profit and Sustainability Rules (PSR), while the investigation into Leicester City has also concluded.
So, what’s the latest on the situation with City? Here’s a comprehensive overview of the ongoing issue.
Man City vs. Premier League: Hearing Updates and Verdict Timeline
The hearing concerning the Manchester City case began on Monday, September 16, 2024, at the International Dispute Resolution Centre in London. This hearing is projected to last about ten weeks.
A tri-member panel chosen by Murray Rosen KC will review evidence presented by both Manchester City and the Premier League’s legal teams. The panel may consist of members from the Premier League’s judicial panel, along with non-members.
This complex case has taken significantly longer than other PSR cases, such as the straightforward ones concerning Everton and Forest. Part of the delay can be attributed to City’s alleged lack of cooperation with the Premier League during the investigation, which constitutes a significant portion of the allegations against them.
Given the extensive evidence to evaluate, a verdict is not expected until early 2025. It’s possible that the final decision could extend into the spring, though it is anticipated before the conclusion of the 2024/25 season.
Details of the 115 Charges Against Manchester City
The label “115 charges” has become synonymous with the issues facing Manchester City, yet there was initial confusion due to the Premier League’s error-laden announcement regarding the charges. Some sources suggest City actually faces around 130 allegations. For clarity’s sake, we’ll stick with the widely referenced count of 115 charges outlined by major sports news outlets, which can be categorized into five main areas:
- Providing incorrect financial information from 2009/10 to 2017/18 (54)
- Incorrect financial reports regarding player and manager compensation from 2009/10 to 2017/18 (14)
- Non-compliance with UEFA regulations, including Financial Fair Play (5)
- Violating Premier League PSR rules from 2015/16 to 2017/18 (7)
- Failure to assist Premier League investigations from December 2018 to February 2023 (35)
The ramifications for Manchester City could be substantial if they are found guilty of the serious allegations, particularly the claim of inaccurately reporting financial information during a period of significant league success.
The central allegation suggests that City misrepresented owner investments by inflating sponsorships from organizations based in Abu Dhabi. If these sponsorship agreements are deemed illegitimate, it could compromise City’s adherence to PSR and UEFA’s FFP standards. Although the club previously reached a settlement with UEFA over FFP issues, any substantiating evidence of inflated sponsorships might dismiss a majority of the charges.
To simplify, Manchester City is essentially being charged for three primary forms of misconduct:
- Inflated sponsorship agreements
- Unreported payments to an unnamed manager and player (widely believed to involve Roberto Mancini and Yaya Toure, although reports have been contested)
- Lack of cooperation with the Premier League’s inquiries regarding these issues.
Has Manchester City Been Cleared by CAS?
The alleged infractions are reminiscent of the UEFA case against Manchester City. In February 2020, City was banned from European competitions for two years and fined €30 million for their lack of cooperation in the inquiry.
Following an appeal to the Court of Arbitration for Sport (CAS), the club was cleared of any wrongdoing related to disguising equity funding as sponsorship contributions. However, CAS found that City had indeed failed to cooperate with UEFA, reducing the initial fine to €10 million. It’s important to clarify that Pep Guardiola’s assertion of the club being completely innocent is misleading; the CAS ruling criticized City’s obstruction in the investigations.
Moreover, while discussions around City’s CAS case have focused on the time limitations of UEFA’s rules, leading to the impression that the club escaped on a “technicality,” that’s not entirely accurate. UEFA regulations require any misconduct to be prosecuted within five years. In their findings, CAS deemed that the sponsorship allegations tied to a specific telecommunications company were time-prohibited but not those related to agreements with Etihad Airways during earlier seasons.
Potential Consequences for Manchester City
This case’s unprecedented nature leads to a variety of potential outcomes. For instance, if Nottingham Forest received a five-point deduction for one PSR violation, it raises questions about what repercussions Manchester City could face.
The Premier League’s framework allows the independent panel to impose a range of penalties, should City be found in violation of the rules…
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When a guilty verdict is issued, penalties can range from fines and the obligation to cover costs to being expelled from the league. Here’s a summary of potential actions:
- Impose suspension on the club from league participation
- Deduct points
- Propose replaying league matches to the board
- Suggest the league expels the club
- Mandate compensation payments
- Reject player registrations or cancel them
- Impose conditional penalties
- Require the club to cover legal expenses
- Issue any additional orders deemed appropriate
Can Manchester City challenge a guilty verdict imposed by the Premier League?
There is a provision for appeal under the rules of the Premier League, but this does not extend to the Court of Arbitration for Sport (CAS).
If an appeal occurs, Murray Rosen KC will assemble a new appeal panel. As of September 2024, this panel consists of six members.
Unlike UEFA, the Premier League does not have a time limit for appeals; however, it follows English law, where the general limitation period is six years.
Certain circumstances, such as discovering new evidence, ongoing rule violations, or fraud, can prolong this period. Financial expert and previous advisor to Manchester City, Stefan Borson, indicated that the Premier League must demonstrate that City’s alleged infractions were identified within the last six years, many linked to the Football Leaks revelations from November 2018, and involved deceitful activities.
Has there been a previous legal matter involving Manchester City and the Premier League?
Indeed, in June 2024, City filed a comprehensive 165-page legal challenge against the Premier League’s regulations concerning associated party transactions (APT). They claimed to be unjustly treated and argued that rules sanctioned by their competitors equated to a “tyranny of the majority.”
Despite the sensational language used, the essence of the case revolves around regulations established in December 2021 after Saudi Arabia acquired Newcastle United. These rules prevent clubs from exaggerating commercial partnerships with entities tied to club ownership, which already faced evaluation regarding fair market value under UEFA’s Financial Fair Play (FFP) initiatives.
Following a two-week hearing, the verdict was delivered to both City and the Premier League on September 25, with notifications sent to the other 19 Premier League clubs on October 7. The tribunal concluded that the updates to the APT guidelines, which placed the onus on clubs to validate that sponsorship agreements reflected fair market value, were unlawful. Nonetheless, the necessity for an updated APT framework was upheld.
As reported by sources like The Times, this outcome was perceived as a notable legal win for City, despite many of their challenges being dismissed. Both City and the Premier League expressed their appreciation for the findings of the panel.
Although both cases involve issues surrounding state-funded sponsorships, the outcomes of City’s APT case will not influence the 115 case directly. The APT matter addresses current and future competition rules, while the 115 case accuses the club of consistently disregarding regulations they previously agreed to adhere to.
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