Manchester City could possibly face relegation to the Championship if charges against them are upheld on appeal
Enzo Maresca on the touchline during the English Premier League football match between Manchester City and Sunderland at the Etihad Stadium.
Enzo Maresca and Man City are awiting the possible punishment from the Premier League.(Image: PETER POWELL, AFP via Getty Images)
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Manchester City face losing at least £300 million in revenue should they suffer relegation to the Championship. The club have launched an appeal after they were found guilty of 114 breaches of Premier League financial rules.
City say that they have 'irrefutable evidence' to prove their innocence after the Premier League revealed that the independent panel found that they used 'sham' sponsorship deals to artificially inflate their revenueby around £900 million, and avoid breaching financial fair play rule between 2009 and 2018.
Part of their appeal is based on some of the sponsorship money coming from the United Arab Emirates government, something that is allowed under Premier League laws, instead of the club owners, which is against regulations. The appeal could be heard within the next 12 weeks, meaning we could get a final verdict by the new year.
Should City's appeal prove unsuccessful, they could face severe consequences, potentially including hefty points deductions or even expulsion from the Premier League. Fellow Premier League clubs are reportedly divided over whether such measures should be imposed, with transfer embargos and financial penalties also among the possible sanctions being considered.
Were City to receive a points deduction resulting in relegation, or face expulsion from the Premier League altogether, they would find themselves competing in Championship football next season — a prospect that would represent an enormous financial setback for the club.
Football finance specialist Kieran Maguire told The i Paper that dropping down a division would see City forfeit £50 million in broadcasting revenue and £225 million in Champions League revenue.
Matchday income could also decline by approximately £40 million, owing to reduced prices across areas such as corporate hospitality.
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That would represent a combined shortfall of £315 million. Yet that is not the only obstacle City would face, with the Squad Cost Rules (SCR) in the EFL also coming into play.
The regulation permits clubs to allocate no more than 85 per cent of their allowable income towards player and/or manager costs.
Maguire characterised the predicament as: "An FFP catastrophe unless there is a huge exodus."
City's wage bill for the 2024/25 season stood at around £408.4 million. That figure dwarfs the average Championship wage bill of £37 million.
For Enzo Maresca and his team, concentration will be on continuing their 100 per cent start to the new season. City take on Liverpool at Anfield on Sunday (4.30pm) as the Premier League returns after the international break.