Manchester City have confirmed their appeal against the independent commission’s guilty verdict over breaches of the Premier League’s financial regulations, insisting that the ruling contains “clear material errors, of law, principle and fact”.
The club lodged its appeal on Thursday evening after being found guilty of 114 of the 115 charges relating to alleged financial breaches between the 2009-10 and 2017-18 seasons.
In a short statement, City said a “comprehensive body of irrefutable evidence” exists to support their position and confirmed that they will challenge the commission’s findings through the established appeals process.
The decision means one of the most significant financial cases in English football will continue, with the Football Association also examining the implications of the verdict.
Manchester City Begin Appeal After Guilty Verdict
Manchester City’s decision to appeal means the dispute over the club’s financial affairs is far from over.
An independent commission spent years examining the Premier League’s case before concluding that City had breached financial regulations over a period covering almost a decade. The panel found that the club had utilised devices to disguise the true extent of certain liabilities.
The Premier League has said City “systematically broke Premier League Rules for nearly a decade”.
The commission also found that City arranged what it described as “sham contracts” with several commercial partners as part of a scheme involving more than £830 million in alleged secret funding.
Manchester City have consistently denied wrongdoing and have now formally challenged the conclusions reached by the independent panel.
The appeal will be heard privately by a new three-person independent commission. Like the original panel, its members will have significant legal experience.
Under a section of the Premier League regulations introduced this summer, an appeal hearing should conclude within 12 weeks of being heard, with a decision communicated within 30 days. However, the regulations allow that timeframe to be extended when necessary.
That means the exact length of the process remains uncertain.
What Will City Argue?
A major issue expected to feature in the appeal concerns the funding of key sponsorship agreements.
Sources previously cited by BBC Sport indicated that City were expected to argue that some sponsorship deals were funded by the Abu Dhabi government rather than the club’s owners.
The club’s owners, Abu Dhabi United Group, are a private investment company belonging to United Arab Emirates vice-president and deputy prime minister Sheikh Mansour. According to the commission’s findings, ADUG allegedly topped up the value of commercial deals as part of what was described as a “disguised funding scheme”.
The alleged arrangements were said to have helped City appear compliant with Premier League and UEFA financial regulations.
Premier League rules permit state-owned bodies to sponsor clubs, meaning the precise source and nature of sponsorship payments are central to the dispute.
However, statements made by Etihad Airways could become relevant to the arguments surrounding the sponsorship arrangements.
In 2015, during a United States government investigation into state-owned airlines, Etihad rejected claims that the Abu Dhabi government had paid for its Manchester City sponsorship. The airline said it had funded the agreement from its own liquidity.
Etihad later reiterated that it had never received subsidies from the Abu Dhabi government.
The airline has also said it is considering legal action against the Premier League, arguing that the publication of the commission’s findings has damaging implications despite Etihad not being named in the redacted report.
FA Examines Wider Implications
The appeal is not the only development following the commission’s verdict.
The Football Association said the findings have “significant implications for the integrity of the game” and confirmed that it is carefully considering the decision and its consequences.
The FA also has powers that could allow it to launch its own investigation into the matter, although no such action has been confirmed.
Meanwhile, the Treasury Committee has asked whether HM Revenue and Customs requested access to redacted documents contained within the commission’s report.
Dame Meg Hillier, chair of the cross-party committee, said she wanted reassurance that HMRC understood the importance and public interest surrounding the case.
A separate report by Tax Policy Associates has claimed that City may have failed to pay as much as £12 million in tax because of an alleged “sham” contract involving former manager Roberto Mancini. The report suggested potential liabilities could rise to £24 million once penalties are included.
Those claims are separate from the Premier League proceedings and form part of the wider scrutiny following the verdict.
How Long Will the Appeal Take?
The timeframe for the appeal remains uncertain.
Under the current Premier League regulations, an appeal hearing should conclude within 12 weeks, with the decision communicated within 30 days. Based on the date City said it lodged the appeal, the 12-week period would run to 24 December, although the regulations allow the timeframe to be extended if necessary.
Previous precedent suggests sanctions against Manchester City may only be imposed after the appeal has been decided, although this is not guaranteed.
There could also be a further appeal if sanctions are imposed after the current process.
For now, Manchester City will focus on challenging the commission’s findings and presenting its evidence before the new independent panel.
The 115 charges have already produced one of the most significant financial-rule cases in English football. City were found guilty of 114 of them, but the appeal now provides the club with an opportunity to challenge those conclusions.
The next stage will be for the independent appeals panel to examine City’s arguments and determine whether the original findings should stand or be altered.
