If the English Premier League (EPL) hierarchy has its way, Manchester City will be made an example of for their alleged breaches of the league’s financial rules.

The current EPL champions face about 100 charges relating to financial malfeasance over a nine-year period (between 2009 and 2018). According to the league, the Citizens were dishonest about figures in their books.

The Emirati-owned side were crowned EPL champions three times during that period and some circles have called for the club to be stripped of those league titles.

The club is accused of not providing the league with accurate financial information  relating to revenue and expenditure.

Moreover, the Manchester side is said to have fibbed about how much they were paying an unnamed manager during this period, with said manager’s remuneration allegedly much higher than what was stated in his official contract.

“Accusations are that Manchester City have artificially inflated the money coming into the club, with particular respect to commercial and sponsorship deals,” football finance expert Kieran Maguire told BBC Radio.

“The Premier League appears to be claiming the money was actually coming from the club owner, which doesn’t count towards FFP [financial fair play], but was being disguised as sponsorship income,” Maguire added.

“The other charges are in relation to Manchester City being alleged to have artificially deflated the costs of running the club by having managers on contracts with another company connected to the owners so that they only put through a small element of the true cost of managing the club through the books.”

The club has vehemently denied the allegations, which will be dissected and reviewed by an independent panel to be appointed by Murray Rosen, who chairs the league’s judicial wing.   

“Manchester City is surprised by the issuing of these alleged breaches of the Premier League rules, particularly given the extensive engagement and vast number of detailed materials that the EPL has been provided with,” said City, which the Premier League has also accused of not cooperating.

“The club welcomes the review of this matter by an independent commission, to impartially consider the comprehensive body of irrefutable evidence that exists in support of its position. As such we look forward to this matter being put to rest once and for all.”

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Why all the fuss?

It is all to do with financial fair play.

This tool was conceived in 2009 by the governing body of European soccer, Uefa. Its purpose? For the continent’s clubs to operate a sustainable business model, or face punishment from the governing body.

The measures followed the arrival in European football of wealthy owners, who pumped large amounts of their own money into their clubs to try to obtain success. This left clubs that depended on income they made themselves at a disadvantage. Uefa was trying to limit the damage this trend was causing to less wealthy clubs across the continent.   

English club Chelsea benefited immensely from their then owner billionaire Roman Abramovich pumping his own money into the club before these rules were eventually introduced in the 2011/2012 season.

Abramovich bought the London club in 2003 and immediately went on a spending spree, during which the Blues splurged £153-million (about R3-billion) on players in the first transfer window of him being in charge. It was an unprecedented occurrence in the Premier League at the time.

Manchester City were taken over by wealthy owners five years after Abra­movich’s arrival in European football. In 2011, more money-stacked owners arrived in Europe when the Qatar Investment Authority took over French club Paris Saint-Germain (PSG).

That’s when Uefa decided to act and finally implement FFP, which, in its purest essence, says teams should not spend more than they make.

It is designed to ensure teams that lack the financial muscle to compete with wealthier clubs do not take part in competitions already feeling licked by rich counterparts.  

“When we first discussed financial fair play, it was Chelsea [that attracted questioning]. Then you have Manchester City. Then it was PSG,” said current Fifa president Gianni Infantino when the rules were implemented. He was Uefa’s general secretary at the time.   

“Our responsibility is to have a system that works for more than 630 clubs and not look at one club and neglect the rest,” Infantino added.

Clubs that were already profit powerhouses, such as Manchester United and Real Madrid, would still thrive though – having established their riches through decades of success when FFP wasn’t around and financial dealings were not scrutinised.

Chelsea owner Roman Abramovich looks on from the stands during the Barclays Premier League match between Chelsea and Manchester City at Stamford Bridge on 16 April 2016 in London, England. (Photo: Paul Gilham / Getty Images)

Twice bitten, not shy

It’s not the first time City’s financial affairs have been the subject of legal action.

Three years ago, the club successfully appealed a two-year suspension from European club football handed down by Uefa, after the governing body’s financial control wing found them guilty of “serious breaches” of club licensing and FFP rules.

City took the matter to the Court of Arbitration for Sport (CAS), which overturned the ban and reduced a fine they had received from €30-million to €10-million.

The CAS said the alleged breaches had happened too long ago, without Uefa acting. In legal lingo, they were time-barred offences. And that was that.

Pep Guardiola, manager of Manchester City, reacts during the Premier League match between Arsenal FC and Manchester City at Emirates Stadium on 15 February 2023 in London, England. (Photo: Julian Finney / Getty Images)

Witch-hunt?

Possible punishments for the new alleged offences include a points deduction, being barred from signing players, being fined or even expulsion from the Premier League.

The latter is the least likely. However, Manchester City manager Pep Guardiola has hinted that that is the punishment other teams in a league that City has dominated in recent seasons would like to see.

“My first thought is we have already been condemned. What’s happened since Monday happened before with Uefa: we were condemned, we already have the accusation, now we have charges,” said Guardiola.

“You have to understand that 19 teams in the Premier League are accusing us without letting us [have the] opportunity to defend ourselves, in the words of my club, my owner, my chairman, my people. They explain everything [to me] during these three or four years. You know exactly on what side I am.”

There is no timeline indicating when the case will end and there is a large amount of material to be processed by the independent panel. With the option to appeal should City be found guilty, it is unlikely the case will be concluded this season.

That means City’s onslaught on a fifth league title is still very much alive. For now. DM168

This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R25.