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Manchester City and the Premier League's charges

What is the situation with the Premier League's investigation into Manchester City's alleged breach of its profitability and sustainability rules?

In August 2019, the league issued a disciplinary complaint against Manchester City and asked them to release documents; the club refused  In October 2019, the league set up an arbitration tribunal to enforce that request; the club challenged the tribunal’s jurisdiction and impartiality.   In February 2020, the league changed its rules to ensure impartiality and the tribunal restated the demand for disclosure

In June 2020, the tribunal rejected a fresh challenge from the club, who then filed an arbitration claim at Companies Court.   In July and November 2020, the tribunal again rejected arguments from the club and issued a final demand for disclosure but the order was stayed pending court proceedings

In March 2021, Justice Moulder rejected the club’s arguments about the league tribunal, denied it permission to appeal and informed City she intended to publish these decisions; she did, however, give City permission to apply for an appeal on the publication issue, which City accepted.   In April 2021, Lord Justice Males accepted the appeal, and it was heard on June 30 by him, Sir John Flaux, the Chancellor of the High Court, and Sir Geoffrey Vos, the Master of the Rolls.   And on Tuesday, July 20, their rejection of City’s appeal was published, along with Justice Moulder’s rulings from March.

As the judges pointed out, there really was very little actual information about the state of the investigation in their judgments, beyond City’s steadfast refusal to hand over documents, the league accusing City’s procedural challenges as “tactical” (about which Justice Moulder added she had not made any judgment) and a reference to City saying publication would be detrimental as they were in talks over a commercial deal earlier this year but that was no longer the case by late June.

What can be said is that the league should not run into the same “time-barred” issues as UEFA, as it has no five-year rule, and it also has the benefit of the additional emails Der Spiegel published after City were cleared by CAS last summer.

Those emails appeared to add more weight to the suggestion that City’s main sponsor, Etihad, was substantially reimbursed for its generous support of the club by Sheikh Mansour. It is a suggestion the club has flatly rejected and UEFA has not revisited.

It is also the case that the Premier League’s allowable losses limit — £105 million over three years — is about four times as generous as UEFA’s and City, once all the permitted deductions are made, might not break that ceiling even if the most serious of Der Spiegel’s allegations are proven.

What is more likely is that City might eventually be charged with a charge akin to misleading the league or simply failing to cooperate with an FFP inquiry.

 


Comments

  1. The corruption in football has been apparent for a long time, it isn't just clubs but top officials who become very rich. They sell their votes so Qatar can get the World Cup.
    Several of Bayern Munich's top officials have been known to be corrupt, Benfica's chairman was arrested recently for corruption & money laundering. In Spain the country's fascist dictator was a Real Madrid supporter, the financial support given helped them to win 6 European Cups. Barcelona are in debt of over £1 billion. Manchester United's owners have taken hundreds of millions of £'s out of the club..There have been regular & consistent charges of corruption against Inter Milan, AC Milan & Juventus.
    There was no witch hunt when Jack Walker ploughed his wealth into Blackburn Rovers & they won the first Premiership. Their was no action over Chelsea when Abromovich put his wealth into them & they were successful.
    The question is why is their so much interest in the money invested in PSG & Manchester City. There has never been a level playing field & probably never will, so is this discrimination against wealthy Arab owners justifiable or is it a smokescreen?

    ReplyDelete
  2. Thanks for your interesting comment. I suspect that there is an interest in high profile scalps. The problems are endemic as you suggest and not limited to one or two clubs.

    ReplyDelete

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