Manchester City have formally lodged an appeal against an independent commission’s decision to find the club guilty of all charges concerning breaches of Premier League financial regulations. In a brief statement released on Friday, the club declared the ruling ‘unsafe,’ citing clear material errors regarding law, principle, and fact.
The club asserted its innocence, stating that a comprehensive body of evidence supporting their position had been filed with the commission on Thursday evening.
The verdict, confirmed on Tuesday, relates to alleged regulatory violations between the 2009-10 and 2017-18 seasons. The independent panel found that City systematically broke rules for nearly a decade, utilizing ‘sham contracts’ and devices to disguise secret funding totaling more than £830m.
Earlier on Friday, the Football Association emphasized the gravity of the findings, stating they carry ‘significant implications for the integrity of the game.’ An FA spokesperson added that the governing body is carefully considering the decision and will take appropriate action, though it declined to comment further while proceedings with the Premier League remain active. The FA retains the power to launch its own investigation and impose additional sanctions.
According to sources speaking to BBC Sport, City’s defense in the appeal is expected to argue that key sponsorship deals were funded by the Abu Dhabi government rather than the club’s owners. However, this strategy may be complicated by statements made by Etihad Airways, the club’s major sponsor, to US authorities in 2015. During an investigation into state-owned airlines, Etihad told the US Department of Commerce, Transportation, and State that claims of Abu Dhabi government funding for the sponsorship were false. The airline stated it funded the 10-year agreement, which includes stadium naming rights, from its own liquidity and receives no subsidies.
Etihad Airways has announced it is considering legal action against the Premier League, arguing that the publication of the commission’s findings has damaging implications despite the airline not being named in the redacted report. The carrier categorically rejected any suggestion that it was involved in improper commercial arrangements.
The findings have also drawn attention from UK government bodies. The Treasury Committee, chaired by Dame Meg Hillier, has written to HM Revenue and Customs (HMRC) requesting reassurance regarding the handling of redacted documents in the report. This follows a separate report by Tax Policy Associates, which alleges City failed to pay up to £12m in unpaid tax due to a ‘sham’ contract with former manager Roberto Mancini, potentially raising total liabilities to £24m including penalties.
Additionally, the Business, Innovation, Science and Trade committee has called for stronger corporate accounting enforcement. Chair Liam Byrne described the situation as a ‘serious failure of security’ and stressed the need for fair rule enforcement.
It has also emerged that City chairman Khaldoon Al Mubarak met with Business Secretary Jonathan Reynolds days before the guilty verdicts were announced. While initially reported by Bloomberg, the BBC understands the club was not the topic of discussion; Al Mubarak attended in his capacity as CEO of the Abu Dhabi sovereign wealth fund, with talks focusing on UK-UAE relations regarding defense, security, intelligence, and trade. UK government sources described the meeting as standard practice.
The upcoming appeal will be heard in private by a new three-person independent commission panel, composed of individuals with legal expertise similar to the original tribunal. Under Premier League regulations introduced this summer, the appeal should conclude within 12 weeks of being heard, with a decision issued within 30 days thereafter. Based on the filing date of Thursday, this would set a target completion date of December 24, though the timeframe can be extended if deemed necessary.
While previous precedent suggests sanctions will be delayed until after the appeal decision, this is not guaranteed. There remains the possibility of a second appeal against any sanctions imposed on the club.
Is it weird that City always finds itself in these situations? Just seems suspicious that their financial books are perpetually questioned.
I hope they actually get penalized. Fans from other clubs have every right to be angry after reading these details.
Absolutely devastating for football’s integrity. If clubs can get away with this level of accounting ‘creativity,’ the game loses all meaning.
The Etihad sponsorship issue seems like the biggest loophole. If the funding source was disputed back in 2015, why wasn’t this flagged sooner?
Eighty-three million pounds in hidden funds? That is an absurd amount to disguise for nearly a decade. Something doesn’t add up.