Manchester City Lodge Appeal Against Guilty Verdict In Finance Rules Case

Manchester City have formally appealed after an independent commission found the club guilty on all charges relating to breaches of the Premier League’s financial regulations.

In a short statement, City said the commission’s ruling contained “clear material errors, of law, principle and fact and is unsafe.” The club insisted it was innocent and said it had filed “a comprehensive body of irrefutable evidence [that] exists in support of all of its positions” on Thursday evening.

The guilty verdict was confirmed on Tuesday, covering charges relating to Premier League financial rules between the 2009-10 and 2017-18 seasons. The Premier League says City “systematically broke Premier League Rules for nearly a decade.”

On Friday, the Football Association said the verdict has “significant implications for the integrity of the game.” It added: “We are carefully considering the decision and its implications and will take action where appropriate.”

The FA said it would not comment further while proceedings between the Premier League and City remain ongoing, but would continue to monitor developments. Its overarching powers could allow it to launch its own investigation and impose further sanctions.

The independent panel found City arranged “sham contracts” with a number of commercial partners as part of a scheme to disguise secret funding of more than £830m. It also found City “utilised devices” to “disguise the true extent of certain club liabilities.”

Sources told BBC Sport that City are expected to argue on appeal that key sponsorship deals were funded by the Abu Dhabi government, rather than by the club’s owners. Owners Abu Dhabi United Group — a private investment company belonging to UAE vice-president and deputy prime minister Sheikh Mansour — are said to have topped up commercial deals through a “disguised funding scheme” worth £830.69m, enabling City to appear compliant with Premier League and UEFA financial rules. Premier League rules permit state-owned bodies to sponsor clubs.

City’s principal sponsor, Etihad Airways, said it is considering legal action against the Premier League, claiming the release of the commission’s findings had “damaging implications… despite the airline not being named in the redacted published findings.” The UAE state-owned airline said it “categorically rejects any finding, conclusion or implication” that it was involved in improper commercial arrangements. Etihad is owned by sovereign wealth fund L’Imad, chaired by the Crown Prince of Abu Dhabi, the son of the UAE president.

The case has also prompted the Treasury Committee, which oversees HMRC, to ask whether the department has requested the redacted documents in the commission’s report. Dame Meg Hillier, chair of the cross-party group of MPs, said she would “welcome reassurance from HMRC that you are seized of the importance of these issues and the public interest in this case.”

The letter followed a report from Tax Policy Associates claiming City failed to pay as much as £12m in unpaid tax because of a “sham” contract with former manager Roberto Mancini. Including unpaid income tax and National Insurance, the report claims City could face penalties taking liabilities to £24m.

The original commission had three members with extensive legal experience. The appeal will be heard in private by a new three-person independent panel with similar legal expertise. Premier League regulations state an appeal hearing should conclude within 12 weeks of being heard, with a decision communicated within 30 days. Twelve weeks from Thursday, when City say they lodged the appeal, would be 24 December. But the timeframe can be disapplied if necessary, leaving the process uncertain. The relevant regulation was only added to the rulebook this summer.

Previous precedent suggests sanctions would only be imposed after the appeal decision, though this is not guaranteed. A second appeal against any sanctions could follow.

The case has also fuelled wider debate, with other club chiefs calling for City to be punished this season, Downing Street saying City are not “above the rules” after backlash to remarks by Greater Manchester mayor Andy Burnham, and key questions remaining over whether the matter could lead to a criminal investigation, relegation or expulsion.