Manchester City is going through one of the most delicate periods in its history. Long considered a model of sporting and economic success since its purchase by Abu Dhabi investors in 2008, the English club is now at the heart of a financial scandal likely to call into question some of its success. The independent commission reviewing the Premier League’s charges has delivered a damning verdict, finding the Cityzens guilty of 114 of the 115 charges against them. At the heart of the case are suspicions of concealment of income, presentation of inaccurate accounts and breaches of the financial rules of the English championship. An earthquake for an institution which dominated the Premier League under Pep Guardiola and accumulated trophies in recent years. If Manchester City strongly contests the conclusions of the commission and has initiated an appeal procedure, the scale of the facts retained places the club facing potentially historic consequences. A deduction of points, a heavy fine, or even exclusion from the English elite are among the sanctions mentioned in this explosive case. The verdict is based on particularly serious facts, which concern nine seasons, from 2009-2010 to 2017-2018.
According to the commission’s findings, Manchester City artificially inflated its commercial revenues by more than £900 million by relying on fictitious or misleading sponsorship deals. Several commercial partners would have paid only part of the sums officially announced, the balance being financed by Abu Dhabi United Group, the structure linked to its owner. The Mancunian club would thus have presented a distorted image of its financial situation, concealed the reality of its accounts from its auditors and football authorities, while significantly exceeding the spending ceilings authorized by the Premier League and UEFA. The commission also upheld three of four charges relating to City’s lack of cooperation during the investigation. The Premier League publicly confirmed these findings on September 29, after several years of proceedings. The residents of the Etihad Stadium, who announced their intention to appeal, however continue to proclaim their innocence and denounce errors of law, principle and fact in the decision. No final sanction has yet been imposed, but the outcome of the procedure could have a lasting impact on the landscape of English football.
Secret negotiations before the verdict
And the new revelation of Bloomberg adds a new, particularly embarrassing episode to the file. According to the American media, Manchester City and the Premier League held confidential negotiations with a view to a possible amicable settlement, before the verdict unfavorable to the club was made public. These preliminary discussions could have allowed the Cityzens to considerably limit their exposure to the heaviest sanctions. The idea would have been to favor a large financial payment rather than a possible relegation or withdrawal of titles. In other words, City could have sought a financial exit rather than exposing themselves to a deal likely to threaten their status among the English elite. But the exchanges quickly failed, according to several sources close to the matter cited by Bloomberg. The media specifies that the discussions had not previously been revealed and that both parties refused to comment on this information.
This attempt at rapprochement necessarily contrasts with the public line of defense of the club, which has claimed from the start to be the victim of unfounded accusations. The breaking point seems precisely to have been the impossibility of finding common ground on the merits of the accusations. Always according to BloombergManchester City reportedly maintained its position of innocence throughout the discussions, refusing to accept the grievances made by the Premier League. The prospect of a settlement would not have led to an acknowledgment of the alleged facts, nor to an agreement allowing the case to be closed. The failure of the talks gave way to a procedure whose consequences remain considerable. The negotiations do not establish additional culpability and do not mean that City has admitted the facts. On the other hand, the decision rendered by the independent commission retained its responsibility for the accusations linked to serious financial failings, as well as for the majority of grievances concerning its cooperation with the investigators.
