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Does audit regime at football clubs need tightening?

One of the missing pieces in the complex jigsaw that makes up the scrutiny and regulation of football finance is the role of auditors.  Indeed, the Financial Times devoted a whole page to the subject in its weekend edition.

Such has been the level of concern among chartered accountants that they have produced a training video relating to finances at a fictional dodgy football club using actors from Eastenders and Game of Thrones: https://www.icaew.com/about-icaew/news/2025-news-releases/football-finance-focus-of-new-icaew-film-to-help-train-accountants-may-2025

City were audited by BDO which is the fifth biggest accountancy firm in the UK and self-described as a market leader in football.  Industry insiders have suggested that BDO may need to contain 'brand damage' as a result of the City episode.  No one is suggesting that BDO have fallen below the highest standards of professional conduct and probity: the issue is bigger than any one firm.

BDO also audits Aston Villa, Burnley, QPR, Southampton, Celtic and Cardiff City.  The sums involved are relatively small in relation to total revenue but help it to establish a reputation as a sports auditor.

Its audit and tax work for City Football Group earned BDO around £200k a year, while City paid £830,000 in the nine years when misconduct was found to exist in terms of PL rules.

Football clubs are not classified as 'public interest entities' which would subject them to a much tougher oversight regime.  If City or any other club was classified as a public interest entity rather than a private one it would be subject to a tougher regulatory regime.   For example, these rules require rotation of key audit partners every five years.

As things stand, it is the ICAEW (the chartered accountants body) that takes responsibility for overseeing the quality of audits, but the FRC could take over the City case and is reportedly considering whether to do so.

Meanwhile, some of the Big Four accountancy firms are urging the Government to revisit the issue as it consults on its corporate reporting reform bill.

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