Premier League uncertainty after Manchester City found guilty of majority of breaches
Manchester City have been found guilty of the majority of financial rule breaches in an independent panel verdict revealed this week, two years and 10 days after the hearing began and 1,329 days after the club were charged. The Athletic first broke the story after BBC Sport was later told the verdict file was sent to club executives who had to sign a non-disclosure agreement to open it.
The Premier League has remained publicly silent and Manchester City said the "process remains ongoing", with an appeal expected. That response has left supporters, rival clubs and observers awaiting clarity on what sanctions, if any, will follow and when a definitive outcome might be reached.
Because City have denied the charges, a sanction hearing convened by the independent panel will be required; at that hearing fines, points deductions and demotion will be among the options on the table. The allegations include seven separate Premier League profit and sustainability rule (PSR) charges and a further five related to UEFA competitions, alongside claims about inflated sponsorship revenue, payments to players and managers, and failures to comply with investigations.
Recent precedents show a wide range of penalties: Everton were docked six points, reduced from 10 on appeal, and later hit with two points in separate cases, while Nottingham Forest were deducted four points. Chelsea's earlier case differed because Stamford Bridge self-reported and admitted guilt, allowing a negotiated sanctioning agreement; City have consistently denied wrongdoing and, although they could seek a negotiated settlement, that appears unlikely given their position to date.
The timing and application of any punishment is central to the competition's integrity. The Premier League usually applies point penalties immediately, subject to appeal, but how and when a sanction would be implemented this season is unclear and could affect league placings and relegation battles; Coventry are third from bottom right now and the outcome could have knock-on consequences for other clubs.
Several Premier League clubs are seeking legal advice about compensation claims, with one source who had held a senior executive role at two clubs saying they expected individual claims against Manchester City and another leading lawyer telling the BBC the process could even be centralised by the league. In June, Everton were ordered to pay Burnley £35m after a PSR breach, a ruling Everton are appealing, and Arsenal, Manchester United, Liverpool and Tottenham reportedly preserved their rights to claim compensation two years ago.
Kieran Maguire, professor of football finance at the University of Liverpool, told BBC Sport it would be considered a "denial of an opportunity" by complainants. "The Champions League in those days was worth a minimum of £30m," Maguire said. "I think by the time we got to 2018, it was probably worth £60m or £70m, and that's in prize money. On top of that, you could claim for loss of gate receipts, loss of sponsor bonuses. This is highly unlikely, but it's certainly being discussed. Players get bonuses for qualifying for the Champions League. Those bonuses, if you talk to people connected to the elite clubs, are normally in the region of 25%. An average salary in those days would probably, if you go back to 2012, be in the region of £80,000 or £90,000 a week. Twenty-five percent of that is four or five million pounds a year. That's how the issues stack up."
BBC Sport has been told a sanction hearing could still be months away and that any result may not be published until Manchester City's appeal is completed; meanwhile the Premier League calendar continues, with Enzo Maresca's side due to travel to Liverpool on 11 October when the competition resumes.