October 1 – Following the announcement from the English Premier League that Manchester City arranged ‘sham contracts’ to disguise secret funding to the tune for £830 million, the club have until Friday to appeal the decision.
The club have been found guilty of deliberately circumventing EPL rules and calling witnesses who gave evidence they knew to be untrue, as rival clubs press for swift sanctions and Etihad Airways considers legal action.
Pep Guardiola, who steered the sky-blue ship for much of the period that is under such heavy scrutiny, has publicly responded by closing ranks around the club’s ownership and hierarchy.
Speaking for the first time in detail since the ruling, Guardiola backed owner Sheikh Mansour, chairman Khaldoon Al Mubarak and chief executive Ferran Soriano, saying: “We will get through this together.”
His intervention is significant because Guardiola had previously said he trusted City’s executives when they insisted the allegations against the club were unfounded. Still, it is curious timing that he brought an end to his decade-long stint at the club just as the case verdict was beginning to become clear.
The commission’s conclusions, however, found that City operated what it called a “Disguised Funding Scheme”, through which commercial revenues were overstated by more than £830 million between 2009/10 and 2017/18.
It concluded that sponsorship agreements recorded payments at levels almost 800% up on those actually funded by sponsors, with owner Abu Dhabi United Group (ADUG) providing the balance, allowing City to conceal the true scale of owner funding from football regulators and its auditors.
The ruling also found that City deliberately sought to circumvent Premier League rules and made concerted efforts to obstruct and frustrate the league’s investigation.
Perhaps most damagingly, after hearing 27 factual witnesses, the commission found that some important witnesses called on City’s behalf had given evidence they knew to be untrue.
Long-term sponsors Etihad Airways has since entered the dispute. The Abu Dhabi-based airline has rejected any suggestion that it participated in ‘improper commercial arrangements’ and is taking legal advice over the impact of the ruling and subsequent reporting on its reputation.
Etihad said it had not been approached by the Premier League or invited to give evidence, while also backing City’s attempt to overturn the decision.
Pressure is meanwhile building from within the Premier League over sanctions, with executives at several unnamed clubs reportedly arguing that punishment should follow swiftly if the findings survive appeal – which they are expected to – with some believing that a points deduction sufficient only to relegate City for one season would not provide justice for the severity of the breaches. Instead, they want to see the club tumble down the divisions.
There is less agreement over absolute expulsion, with the concept of immediately removing City from the competition also carrying with it significant commercial consequences for the Premier League. Any expulsion would also require approval from 15 of the other 19 clubs.
Former Liverpool manager Jürgen Klopp, whose super-side was perhaps worst affected by the City financial juggernaut, has also weighed in.
Klopp, who previously joked that he would attend a Liverpool title parade if City’s honours were ever removed, has struck a humble tone since the ruling, stressing his respect for Guardiola and the football City produced while saying he will wait for the sanctions process before drawing conclusions.
He also insisted he was ‘perfectly satisfied’ with everything he achieved on Merseyside – a happiness that would be unchanged by the verdict of this frankly ugly case.
Al Mubarak has meanwhile come under fresh scrutiny after reports revealed that the City chairman has held UK diplomatic immunity since 2020 through his senior UAE government role.
The status could become relevant if the fallout from the commission’s findings ever moves beyond football regulation into civil or criminal territory, although Al Mubarak has not been personally accused of criminal wrongdoing.
City’s immediate priority remains its appeal, which must be lodged by tomorrow.
Under the Premier League’s current rules, an appeal hearing should be completed within 12 weeks, with the panel then having up to 30 days to issue its decision.
The 40-page document published by the Premier League is also only the redacted Core Decision. A further 37 appendices cover detailed evidence, witness assessments, sponsorship agreements, valuations and City’s conduct during the investigation.
City’s Hail Mary appeal is the next major step, but this is going to rumble on for the coming weeks and months. Still on the menu is a lengthy sanctions process, all whilst rival clubs are considering their own positions and Etihad has already opened the door to further legal action.
And with 37 appendices to the commission’s decision still to be published, there is plenty more detail yet to emerge.
Contact the writer of this story, Harry Ewing, at harry.ewing@insideworldfootball.com