To say the least, Manchester City is one of the world’s freest-spending clubs. It routinely spends tens of millions of dollars on transfer fees and wages in order to build the world’s most impressive roster of players.
Up until Todd Boehly bought Chelsea and broke every transfer spending record in the book, City easily led the world in transfer expenditure, dealing out over $2.7 billion in fees alone.
Ever since the club was acquired by the Abu Dhabi Royal Family, there have been questions about City’s adherence to Financial Fair Play regulations and other spending rules. They were even banned by UEFA from the Champions League for a couple seasons before getting the decision overturned on appeal.
Unfortunately for the Cityzens, there may not be enough money in the world to buy themselves out of their latest financial controversy. After an investigation lasting over four years, the Premier League charged Manchester City with over 100 violations of financial laws and policies.
The allegations range from simple scheduling violations to full-fledged fraud.
At the heart of the investigation are two club sponsorship deals involving Emirati-based companies – telecommunications firm Etisalat and Etihad Airways, whose name and branding are on the club’s kit and stadium.
The Premier League is accusing Abu Dhabi United Group (ADUG), the controlling firm of the club, of funding large portions of the sponsorships out of its own pocket and reporting the income as legitimate partner-generated revenue.
Essentially, if the accusations are correct, ADUG paid itself but reported that income as if someone else had paid it. This allowed the funds to be used on transfers, wages, and other club expenses. In one word: fraud.
If these charges are proven true, Manchester City deserves the worst. Literally the worst possible punishment.
The consequences for the club could range from fines to point deductions to expulsion from the league altogether. The Premier League shouldn’t even think twice about banning Manchester City if these charges turn out to be true.
Now, I do have a few questions about the investigation. The timing of it all is… fishy… to say the least. The league has supposedly been neck-deep in this thing for several years. They just decided to slap it all onto the table in the middle of the season?
Additionally, how did they keep this thing silent for that long? Not one person involved on the City side or the PL side leaked anything? For four years? With what could be one of the biggest stories in the history of the modern game? I don’t quite believe it.
Nonetheless, if Manchester City is found to have committed this level of fraud, it should be kicked out. Plain and simple. Don’t mess with fines (more on that later), and don’t screw around with point deductions. See them out the door.
Now, let’s break down what would likely happen in this scenario:
Manchester City would likely appeal the decision (of course), but let’s say that gets denied. Up next is to submit a request to the EFL to allow them membership in one of its leagues. For context, the EFL governs the second, third, and fourth tiers in the English pyramid (the Championship, League One, and League Two).
In this instance, the EFL doesn’t technically have any reason to admit City at all. It could deny City entry and force them to go even lower into the semi-professional and non-professional leagues.
However, let’s assume the EFL wants the exposure and attention bad enough that it admits City into League Two, the fourth tier.
This would result in a massive budgetary reduction, possibly the biggest in the history of sports. League Two clubs typically receive just over $1 million per season from parachute payments and television revenue, while TV rights in the PL alone are worth $96 million per season, per club.
Everything about City would have to massively change, but that’s not the end.
If it is found guilty of this fraud, other clubs would likely have grounds to file a class-action suit against the team for damages. Think of the teams that have lost Champions League qualification to Man City, or the clubs that have been eliminated from cup competitions, or the English sides that have been relegated at City’s hand.
There are tons of clubs with legitimate claims to millions in damages, and at this point, City wouldn’t likely have the funds to pay out without a serious bailout from Abu Dhabi. This scenario, all told, could spell the end of Manchester City Football Club.
But let’s take a step back and be realistic. Insiders are adamant that the above worst case is highly unlikely, and that the club is likely facing some combination of fines and point deductions if found responsible for wrongdoing. Additionally, punishment could take years to sort out.
Nonetheless, I can’t help but argue that anything short of expulsion is a slap on the wrist. They cheated the clubs around them out of championships, survival, wins, and most importantly, millions and millions in competition-based revenue.
The Manchester City story is one of the wildest I’ve seen in a long time, and it’s worth keeping tabs on. It won’t end anytime soon, either, making it an ongoing case study in the crazy spending habits of government-backed, sportwashing football clubs.
Follow Nick Hedges on Twitter @nicktrimshedges or Instagram @nicktrimshedges