Manchester City found guilty on 130 charges – forced relegation looms

Background of the proceeding

As early as Monday, the league had announced that an independent commission had found Manchester City guilty on 130 of a total of 135 charges. The commission did not decide in the club's favour on the argument that its breaches of the PSR rules over a nine-year period – between the 2009/10 and 2017/18 seasons – were less serious than previously assumed. The Premier League had accused Manchester City of, among other things, failing to accurately report actual revenues, expenditures and profits, as well as concealing breaches of rules on manager remuneration, player agents and the operation of the club.

As a consequence of the guilty verdict, the club faces a broad spectrum of sanctions: from a financial fine and a points deduction to expulsion from the Premier League and a possible forced relegation. Concrete penalties will be determined in a separate hearing, the date of which has not yet been set. Should the commission impose forced relegation, it would be one of the harshest rulings in the history of the English top flight.

Possible sanctions and consequences

Manchester City rejected the allegations in the past and announced it would challenge the decision by all available means. An appeal to the Court of Arbitration for Sport (CAS) is also considered likely should harsh sanctions be imposed. If CAS rules in favour of the club, the verdict could be overturned or softened, further prolonging the outcome of the proceeding.

The case has a history dating back to the era of the club's first takeover by Sheikh Mansour bin Zayed Al Nahyan in 2008. At that time, the investor from the United Arab Emirates ploughed billions into the club and led it to international success within a few years. Subsequently, Manchester City repeatedly ran into conflict with UEFA's Financial Fair Play rules, designed to limit clubs' excessive spending. The current PSR rules are a tightening of these provisions at the national level.

Consequences for club and league

The Premier League only initiated the proceeding after years of internal discussions. After initial charges became public in February 2023, the conflict between league and club escalated. Several attempts at a settlement failed, so the case ultimately ended up before the independent commission. An appeal by the league against an earlier, more lenient verdict in connection with a non-compete agreement is also part of the overall complex.

The guilty verdict comes at the worst possible time for Manchester City. Sportingly, the club is in a phase of upheaval. A looming relegation would have not only sporting but also significant financial consequences: TV revenues, sponsorship deals and player transfers would all be immediately affected. Industry observers assume that forced relegation could cost the club around £200 million in revenue per season.

Reactions in the English football world on Thursday were divided. While rival fans welcomed the guilty verdict as long overdue, some experts also expressed concerns about the proportionality of possible sanctions. The final sentencing is therefore likely to be watched closely not only from a legal but also from a political perspective, as it could set a precedent for future proceedings against other clubs.

A Premier League spokesperson said on Thursday only that the league would fully support the independent commission at the further sentencing hearings. Manchester City itself issued a brief statement late in the evening in which the club once again rejected the guilty verdict and announced an appeal. No further details were initially released.

The next steps in the proceeding are now a sentencing hearing, the date of which the Premier League has yet to announce. Should the commission impose a harsh catalogue of sanctions, Manchester City could immediately lodge legal remedies and pursue the case further at CAS. Until a final decision is reached, the club could in theory keep competing in Premier League operations – unless the commission opts for an immediate suspension.