Manchester City have launched 'unprecedented legal action' against the Premier League' in a dispute that is shaking up top-flight English football.
City are still awaiting an outcome for 115 charges for allegedly breaching financial rules - that are strongly denied by the club - with a hearing now set for November.
The Premier League champions are no strangers to being investigated.
The Manchester side had already been under investigation between 2019 and 2023, resulting in the 2022/23 treble winners being banned from UEFA competitions for two seasons and also received a fine of £26.8million.
However while they await the hearing, which is expected to last six weeks, the City have reportedly taken legal action against the division.
2022-23 treble winner's Manchester City face 115 charges of FFP rules and regulations breaches
City have already been investigated for their dealings from 2019 to 2023, where they were forced to pay an £8.6m fine for the findings
According to The Times, the Etihad outfit are looking to end the league's Associated Party Transaction (APT) rules, which they claim are unlawful.
It was reported in February that City were warning of the threat of legal action against the league's APT rules and the outlet have confirmed the club went ahead with it - with a date for the hearing now set for June 10th.
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The rules - introduced in December 2021 - are designed to maintain competitiveness by preventing top-flight clubs from inflating commercial deals with companies linked to their owners.
However, inside a 165-page legal document, City claim that the rules have been approved by rivals to stifle their success on the pitch as a 'tyranny of the majority'.
The club have accused rivals of 'discrimination against Gulf ownership' - after the rules were implemented shortly after Newcastle United's Saudi takeover.
Rival clubs claim that City's appeal could destroy the competitiveness of the English top-flight, as it would allow rich clubs to spend an unlimited amount on playing squads and infrastructure.
If the league champions are successful in their hearing, it could allow the league's richest clubs to value sponsorship deals without needing independent assessment.
The outlet claim that the Premier League's own legal department have had to shift their focus from the hearing on City's 115 charges to this one.
Manchester City 115 FFP Charges
Manchester City have been charged with a staggering 115 charges of breaking FFP rules during a nine year period.
The time period stretches back to 2009 all the way to 2018. The full 115 charge list was revealed in a Premier League statement in February 2023.
City allegedly face multiple breaches of FFP throughout multiple seasons, which makes the list of potential breaches longer and has resulted with the club being charged with a whopping 115 breaches of FFP regulations.
All the charges faced by Manchester City are serious and if they are proved to have broken all or some of these charges, serious repercussions should be expected.
The charges against the club will be investigated, reviewed and analysed by an independent commission.
| Type of breach | Number of charges relating to breach | Date of trial | Date of decision |
|---|---|---|---|
| Failure to provide accurate and up-to-date financial information from 2009-10 to 2017-18 | 54 | ||
| Failure to provide accurate financial reports for player and manager compensation from 2009-10 to 2017-18 | 14 | ||
| Failure to comply with UEFA's regulations, including UEFA's Club and Licensing and Financial Fair Play Regulations | 5 | Autumn 2024 | Summer 2025 |
| Breaches of Premier League profitability and sustainability regulations from 2015-16 to and including 2017-18 season | 7 | ||
| Failure to cooperate with Premier League investigations from December 2018-present | 35 |
Charges explained
The first alleged breach and the breach which City face the most charges from claims that from every season from 2009-10 to 2017-18, the Manchester side failed to follow the rules that states that member clubs must provide accurate financial information to the league.
This allows the FFP a 'true and fair' view of a club's revenue which includes sponsorship deals and their operating cost, which involve player salaries.
Every club in the Premier League signs up to a code of compliance, which essentially translates to clubs agreeing to behave themselves and provide the league with accurate and up-to-date accounts that are expected to be audited each year.
Over the past few year's City have been accused of inflating the value of their sponsorships which are connected to their owners.
Another charge which City face accuses City of not being truthful in the reporting of the compensating they handed out to leaving managers over the course of multiple seasons.
They also face accusations of reducing the cost of player and coach salaries by introducing a third party who paid a portion of the wages.
All of City's 115 charges were first reported by German outlet, Der Spiegel.
Man City manager Pep Guardiola (second from left) with club owners Sheikh Mansour (right)
Charges include not being truthful about compensation offered to previous managers as they were leaving the club
Timeline of the 115 charges coming to light
- November 2018: German media, Der Speigel outlet publish several articles accusing Manchester City of breaching FFP rules
- March 2019: UEFA launch a formal investigtion following Der Speigel's publications
- May 2019: Manchester City critises the investigation and begin an appeal process
- November 2018: CAS grant Manchester City's appeal, claiming UEFA's showed a lack of decision
- February 2020: UEFA announces that Manchester City will face a two-year ban from all European competition and issue a £28.6m fine
- July 2020: Manchester City appeal ban and see it lifted - only have to pay £8.9m fine
- February 2023: The Premier League charge Manchester City with over 115 breaches of FFP rules and regulations
- Autumn 2024: Manchester City's FFP trial is set to begin
- Summer 2025: A verdict of Manchester City's 115 charges is expected to be reached
Trial and potential punishments
The legal trial between Manchester City and the Premier League is set to get underway this Autumn, 2024.
The trial will be heard in private as the Premier League rule regarding FFP breaches states that any ruling before an independent commission will be held in private and will be strictly confidential.
As the trial is to take place behind closed doors, it means Media outlets will learn no knowledge of the case until a final verdict is revealed by the Premier League.
Therefore the media will learn of the ruling at the same time as everybody else.
In relation to punishments, the current legislation has eight potential punishments for a club who have been found to of breached FFP rules.
Like any form of punishment, some are a lot more severe than others, with one essentially being a slap of the wrist and others being detrimental to the club's future.
Managing director of the Premier League, Richard Masters has been central to the case
If found to have breached any of FFP's rules City could face one of a potential eight punishments
Eight FFP punishments:
- A formal warning
- Fines (amount depending on severity of breach)
- Points deduction (amount depending on severity of breach)
- Refusal of revenue from UEFA competitions
- Prohibiting clubs to register new players to their squads for UEFA competitions
- A limit of the amount of players that can be registered in a club's squad for UEFA competitions
- Disqualification from an ongoing UEFA competition
- Exclusion from future UEFA competitions
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