In September, an independent commission found Manchester City guilty of 114 of the 115 charges brought against it by the Premier League three years earlier. The verdict included all of the financial breaches levied against the club, which were accused of arranging “sham” contracts during a nine-year period between 2009 and 2018. The club has maintained its innocence throughout the process and confirmed that it has launched an appeal, which is expected to be a formality given the severity of the initial ruling.
The appeal is set to go ahead in mid-December and may run for a number of days. The judgment from this appeal is expected to be handed down by the independent commission in the new year. Should the appeal fail, a decision on sanctions will follow. However, it remains unclear when any punishments would take effect, as City would also be able to appeal any sanctions imposed. The Premier League rule book grants the independent commission “sweeping powers to impose whatever sanction it sees fit,” ranging from fines and points deductions to expulsion from the Premier League.
Should the commission choose to remove City from the Premier League, the club would lose its membership and be demoted to a lower division from the end of the season. Alternatively, a severe points penalty could effectively result in relegation. If titles were stripped, the benefits would flow to specific clubs: Manchester United could receive the 2011-12 and 2017-18 Premier League titles, while Liverpool could be awarded the 2013-14 Premier League title, the 2015-16 EFL Cup, and the 2010-11 FA Cup goes to Stoke City. Other potential beneficiaries include Sunderland for the 2013-14 EFL Cup and Arsenal for the 2017-18 EFL Cup.
Liverpool manager Andoni Iraola addressed the situation before his team faced City following the guilty verdict. “I think it should be [concluded quickly]. There should be a moment when something comes from this but now is not that moment,” Iraola said. “Nobody knows what is going to happen and I think this uncertainty is no good for anyone… I think we have to trust the people who are in charge of those things.” Liverpool and other clubs are currently waiting for news on the extent of potential punishments, with some having sought legal advice over whether they would have a case for financial compensation.
The legal process has been prolonged, taking more than two years to reach a judgment on the original 115 charges. City’s legal team is being led by Lord Pannick KC, who previously helped the club overturn a two-year European ban in 2020. The Premier League declined to comment on the case, while City issued a statement expressing frustration that news of the verdict had leaked. “The Premier League process remains ongoing, with significant elements to be completed, and subject to strict confidentiality,” the club stated. “As such Manchester City FC’s position remains consistent with the club’s statement of February 2023.”
Precedent for financial compensation exists in Premier League disciplinary cases. Earlier this year, Everton was ordered to pay Burnley £35 million over the impact of a breach of the Premier League’s financial rules during the 2021-22 season. Burnley argued that the breach impacted their chances of staying in the Premier League, and the commission awarded them £26 million in damages plus £9 million in interest. Clubs impacted by City’s alleged offences could potentially claim a loss of chance to win honours, though these cases would need to be heard individually.
The outcome of the mid-December appeal will determine the next phase of this protracted dispute. If the appeal fails, the independent commission will proceed to determine the specific sanctions, which could range from financial penalties to the most severe measure of expulsion. Until a final judgment on sanctions is rendered and any subsequent appeals are resolved, the competitive and financial landscape of the Premier League remains subject to significant legal ambiguity.
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