Man City: Fresh evidence set to emerge which could have ‘serious’ implications for Citizens
New information could impact Man City and their impending trial over their 115 Financial Fair Play charges, according to reports.
Man City were charged in February 2023 with more than 100 breaches of the competition’s financial fair play regulations dating back to 2009.
Premier League charges casting a shadow over Man City success
The club could face a points deduction or even expulsion from the competition if found guilty but Man City have vociferously denied any wrongdoing and vowed to fight their case. It is unclear how long this process will take with some suggestions that proceedings could run for several more years.
Man City went on to win the treble last season. They overhauled Arsenal to claim a fifth Premier League title in six years, followed up by winning the FA Cup and then beat Inter Milan in the Champions League final.
Off the field the club have also grown, recording record revenues last year.
To many critics of the club, which is supported by the vast wealth of owner Sheikh Mansour, the Premier League charges cast a shadow over their success.
Man City have been under the spotlight more this season with Everton, and more recently Nottingham Forest, given points deductions for breaking FFP rules.
The Premier League club’s sponsorship deal with Etihad forms a chunk of the allegations made against the Citizens and German newspaper Der Spiegel insists the airline paid just £8million of their official £67.5million obligation to City with the rest of the money met by disguised equity funding from Man City’s owners.
And if proven, the Daily Mirror claims that it ‘breaks financial regulations put into place by both the Premier League and UEFA – and would also be tantamount to a fraudulent conspiracy being hatched between City’s boardroom bosses and Etihad executives.’
Etihad are preparing for an Initial Public Offering in which they would have to allow ‘full disclosure’ of their accounts but stock market insiders are doubtful that the airway would be willing to do that over the possibility that they would ‘uncover a smoking gun to prove fraud had been committed’.
A senior figure in the investment banking industry told the Daily Mirror: “If it came to light that Etihad executives were indeed involved in manipulating the sponsorship deal with City, it could cause serious damage to the company’s reputation in the eyes of potential investors.
“Etihad would also have an obligation to disclose any ongoing investigation into the company’s accounts or conduct before the IPO was launched.
“What the Premier League are alleging is extremely serious, not just in terms of football’s rules and regulations. The accusation is that City executives have colluded with officials from Etihad and have lied not only to the club’s independent auditors but to the Court of Arbitration for Sport.
“By extension, that also calls into question what information was disclosed by City’s owners to Silverlake before the American private equity firm bought a significant stake in the club in 2019. That’s why the Premier League’s allegations go way beyond accusing City of failing to meet Profit and Sustainability Rules.”
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