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Manchester City has officially announced that it has lodged an appeal following a determination by an independent commission that the club breached Premier League financial regulations on all counts. The club described the commission’s ruling as flawed, stating it contained “clear material errors, of law, principle and fact and is unsafe.” City maintains its innocence and claims to have submitted “a comprehensive body of irrefutable evidence” supporting its positions in the appeal filed on Thursday evening.
The Football Association (FA) responded earlier on Friday, highlighting the seriousness of the verdict by emphasizing its “significant implications for the integrity of the game.” The FA is carefully reviewing the decision and its potential consequences, pledging to act appropriately once the review is complete. The ruling, officially announced on Tuesday, found Manchester City guilty of multiple breaches of the Premier League’s financial rules spanning the 2009-10 through 2017-18 seasons. Due to ongoing proceedings, the FA has refrained from offering further comments but remains vigilant in monitoring the situation.
The independent panel concluded that City engaged in deceptive practices, including the use of “sham contracts” with commercial entities to obscure over £830 million in secret funding. The Premier League accused the club of systematically violating its rules for nearly a decade. City plans to argue in its appeal that key sponsorship agreements were funded by the Abu Dhabi government rather than directly by the club’s owners, the Abu Dhabi United Group. This assertion, however, faces challenges from statements made by Etihad Airways, the club’s major sponsor, during a 2015 investigation by the US government. Etihad categorically denied receiving subsidies from the Abu Dhabi government and stated that its sponsorships, including a decade-long stadium naming rights deal with City, were funded solely from its own liquidity.
Beyond the football world, the ramifications of this case have drawn the attention of UK government bodies. The Treasury Committee has expressed interest in whether HM Revenue and Customs (HMRC) has obtained access to redacted documents related to the commission’s findings. Dame Meg Hillier, chair of the committee, stressed the importance of HMRC’s involvement given the public interest. This follows a report from Tax Policy Associates suggesting Manchester City may have unpaid tax liabilities reaching up to £12 million due to a “sham” contract with former manager Roberto Mancini, with potential penalties increasing this figure to £24 million. The Business, Innovation, Science and Trade committee has also advocated for stronger enforcement of corporate accounting rules, emphasizing fairness and security. Notably, City chairman Khaldoon Al Mubarak met with Business Secretary Jonathan Reynolds shortly before the verdicts were released; however, the government asserts the meeting was unrelated to the case and focused on broader UK-UAE relations.
The appeal process will be handled by a newly convened independent commission consisting of three legal experts. According to recent Premier League regulations, the appeal hearing should ideally conclude within twelve weeks of its commencement, with a decision delivered within 30 days thereafter. This timeline, which would place a potential resolution just before Christmas, can be extended if necessary, leaving the exact duration uncertain. Historically, sanctions have been imposed only after the conclusion of appeals, but the possibility remains that further appeals might follow any penalties applied.
City’s defense will rely heavily on its argument that sponsorship deals were genuinely funded by the Abu Dhabi government rather than the club’s owners, undermining the allegations of disguised funding to skirt financial fair play rules. It is important to note that Premier League regulations do permit sponsorship from state-owned entities. Meanwhile, Etihad Airways has indicated it is contemplating legal action against the Premier League, objecting to the release of the commission’s findings which it claims have “damaging implications” despite the airline not being named in the public report. The airline reiterated that it “categorically rejects any finding, conclusion or implication” of involvement in improper arrangements. Etihad is owned by the sovereign wealth fund L’Imad, chaired by Abu Dhabi’s Crown Prince, underscoring the complex ties between City’s commercial partners and the UAE government
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