South AfricaMan City Guilty of Financial Breaches
Manchester City found guilty of serious breaches of Premier League financial rules, appeal lodged. The club's strategy is under question after a 2015 statement from Etihad Airways contradicted their explanation for extra funding.
Global Newsflix 2 min read
Manchester City has been found guilty of serious breaches of the Premier League's financial rules over a nine-season period. The independent Commission found that the club arranged 'sham' contracts with commercial partners to artificially inflate revenues and reduce costs.
The Commission also found that Manchester City filed misstated accounts and concealed the true state of its finances from auditors and football regulators. The club's actions were found to have been intended to circumvent the Premier League's rules.
The club has lodged an appeal, which is expected to argue that the extra funding for their sponsorship deals came from the Abu Dhabi government. However, a 2015 statement from Etihad Airways submitted to the US government appears to contradict this explanation.
Jesse Marsch, Canada coach, has called for Manchester City to be punished severely over the breaches. Marsch said his experience managing against the club left him convinced there were inconsistencies in the way it operated.
The Premier League alleged that Manchester City used 'sham' commercial contracts to inflate revenue and understate costs by more than 900 million pounds. The club has denied wrongdoing.
The case has drawn comparisons with Chelsea, who were handed a £10m fine and a two-year suspended transfer ban for 74 rule breaches. However, there are key differences between the two cases, including the fact that Chelsea self-reported the violations and cooperated fully with the investigation.
The appeal process is expected to take at least 12 weeks plus 30 days. Manchester City is likely to argue that the new ruling does not apply to them.
Key facts
- Manchester City found guilty of serious breaches of Premier League financial rules
- The club arranged 'sham' contracts to artificially inflate revenues and reduce costs
- Manchester City filed misstated accounts and concealed the true state of its finances
- The club has lodged an appeal against the guilty verdict
Three perspectives
Neutral
The appeal process will determine the outcome of the case. Manchester City's strategy is under question after the 2015 statement from Etihad Airways. The Premier League's financial rules are designed to ensure fair competition among clubs.
Positive
The guilty verdict demonstrates the Premier League's commitment to enforcing its financial rules. The appeal process will provide an opportunity for Manchester City to present their case. The outcome of the case will have significant implications for the club and the Premier League.
Negative
The breaches found by the Commission are serious and demonstrate a lack of transparency and accountability at Manchester City. The club's actions have undermined the integrity of the Premier League. The appeal process may not be enough to address the concerns raised by the case.
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