Premier League clubs eye compensation as Manchester City found guilty of 114 financial breaches - Report
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City won eight Premier League titles since 2008.
From an inconsistent team in the English top flight to one of Europe’s most dominant forces, Manchester City’s fate changed after Abu Dhabi’s Sheikh Mansour took over the club back in 2008. Ever since then, City have won eight Premier League titles, one UEFA Champions League title and the FIFA Club World Cup.
Some of the best players in world football, including the likes of Sergio Aguero, Kevin De Bruyne, Rodri, Bernardo Silva, Erling Haaland, and David Silva, have donned the City jersey. One of the greatest coaches in world football, Pep Guardiola, has led the club for several years before passing on the baton to Enzo Maresca.
However, there have been a lot of questions raised about their financing and whether they reported their expenditures and income accurately.
The Premier League launched an investigation. In February 2023, it charged City with 115 alleged breaches of financial regulations. City were accused of inflating their sponsorship revenue to allegedly disguise funding from Abu Dhabi-linked companies, Etihad and Etisalat.
They were also accused of undisclosed payments and breaching the financial sustainability rules of UEFA under the Financial Fair Play (FFP) regulations and PL’s Profitability and Sustainability rules (PSR).
Now, as reported by The Athletic, an independent commission has found Manchester City guilty of all but one of the 115 charges. Sanctions have not been determined as City are expected to appeal.
The news spread like wildfire. Premier League clubs are now eyeing a legal move to seek compensation from Manchester City.
Which Premier League clubs could seek compensation from City?
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The Burnley-Everton case revealed how Burnley were entitled to receive compensation from Everton. Burnley finished 18th in the 2021-22 season, whereas the Merseyside outfit survived in 16th with 39 points.
Everton received a six-point sanction for financial breaches. Burnley argued that if six points had been deducted from Everton’s total, the Clarets would have easily avoided relegation. An independent commission awarded Burnley £26 million, plus £9.1 million in interest.
Similarly, within the 2009-18 financial reporting period, City won three titles and clubs like Liverpool and Manchester United, who finished second in those three seasons, can claim a compensable loss. However, finishing second doesn’t prove entitlement to damages.
Why could Champions League compensation be enormous?
Let’s take another example of Tottenham Hotspur. In the 2012-13 season, Spurs finished fifth, losing out on UCL qualification, and City finished second. If the North London outfit prove that City’s breaches caused a loss of a qualification opportunity, Spurs may be entitled to compensation.
Qualifying for the UCL generates several sources of income for the club. From UEFA participation payments, performance bonuses, broadcasting-related distributions and potential sponsorship and matchday revenues, the perks are immense.
The road for Manchester City looks tough here. They face disciplinary sanctions from the Premier League and compensation proceedings brought by other fellow clubs.
What happened to Manchester City?
As reported, an independent commission has found Manchester City guilty of all but one of the 115 charges.
How many Premier League titles have City won since 2008?
City have won eight Premier League titles since 2008.
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