Manchester City have been found guilty on virtually all counts of breaching the Premier League's financial rules
Manchester City have been found guilty on virtually all counts of breaching the Premier League's financial rules
A football finance expert reckons the EFL could be set for a financial boost if Manchester City find themselves relegated from the Premier League.
City are currently in hot water after being found to have breached financial regulations over a nine-year period from 2009 to 2018.
On Tuesday evening the Premier League published a redacted report from the independent commission which investigated more than one hundred charges against City, who were found to have benefitted from ‘sham’ contracts.
City continue to deny the allegations and will appeal the commission’s findings and as yet no punishment has been announced.
That hasn’t stopped extensive discussion, though, and Kieran Maguire has addressed the idea the ten-time champions might lose their Premier League status.
Maguire told the BBC: “In the Leicester City case, the committee made a recommendation and the Premier League and the EFL now do have a channel through which they will opt to consider punishments given by each other’s board.
“Therefore, while the EFL does not have to take the recommendation of the Premier League commission, there is nothing to stop to stop it saying, ‘Yes we’ve heard it, we’ve spoken to our members and relegation to League Two is an appropriate punishment.’
“It would be in the EFL’s interests. Manchester City in the EFL is going to help them negotiate their next broadcasting deal. Manchester City being put into League Two means they are going to be the biggest show in town in the EFL for three seasons.
“If you talk to EFL club owners, some will say that it’s going to impact upon our ability to win promotion from League Two, others will say, 'It's going to be our biggest payday of the season, bring it on.’”
As things stand the EFL’s broadcasting contract is a £935m five-year deal with Sky Sports which runs out in 2029. Championship clubs including Birmingham City have pocketed nearly £6m per season from the current contract.
Blues will hope to be out of the EFL and in the Premier League by the time the next deal is negotiated – and it might be that City are still exonerated – but if they do end up rubbing shoulders in the same division it would certainly generate intense interest.
What isn’t known is the time-line but Maguire believes a resolution could be reached this season: “If it isn’t we end up with a situation like that of Burnley and Everton where a club could be relegated, Manchester City are not given a deduction this season and it’s given next season instead and the club which finishes 18th could say had the deduction been applied sooner we would not have been relegated so that adds to the complication.
“Looking at the Premier League’s press release it does seem it is keen for this to be resolved as quickly as possible. If you take a look at the length of time it took in respect of Forest and Everton, once they had heard the evidence, actually applying the tariff was the quick part of the equation. It is listening to the evidence which is the torturous period which we have had up to now.”
City continue to deny all charges.