Manchester City could be docked points or even expelled from the Premier League after the English champion was charged with more than 100 breaches of financial rules on Monday.
The Premier League has referred City to an independent commission over the alleged rule breaches from 2009-10 to 2017-18 — a period in which the club took their first steps toward becoming English soccer's dominant force.
City, which last month topped the Deloitte money league of the world's richest clubs, said it was surprised by the charges and insisted there was "irrefutable" evidence that supports their case.
The club was banned for two years from UEFA competitions in February 2020 by European soccer's governing body for "serious financial fair-play breaches," but the sanction was overturned by the Court of Arbitration for Sport later that year.
In a statement, the Premier League said the alleged breaches relate to the reporting of accurate financial information, the submission of details of manager and player pay information, a club's responsibility to adhere to UEFA's Financial Fair Play (FFP) regulations and to the league's own profitability and sustainability regulations.
City is also alleged to have breached rules requiring them to cooperate and assist with the Premier League's investigations.
Premier League rule W.51 covers the sanctioning powers available to commissions should alleged breaches of league rules be found proved.
These range from a reprimand, through to the deduction of points up to a recommendation to the league to expel a club from the competition.
The commission has the power to make such sanctions conditional on defined actions being taken within a fixed time period, and respondents have a right of appeal.
City issued a statement saying it was "surprised by the issuing of these alleged breaches of the Premier League rules, particularly given the extensive engagement and vast amount of detailed materials that the EPL (English Premier League) has been provided with.
"The club welcomes the review of this matter by an independent commission, to impartially consider the comprehensive body of irrefutable evidence that exists in support of its position.
"As such we look forward to this matter being put to rest once and for all."
City chief executive Ferran Soriano is understood to have only been notified by his Premier League counterpart Richard Masters of the referral over alleged breaches as the statement was going live on the league's website.
The club is alleged to have breached league rules requiring provision "in utmost good faith" of "accurate financial information that gives a true and fair view of the club's financial position".
The Premier League said the accurate financial information required relates to "revenue (including sponsorship revenue), its related parties and its operating costs."
The second set of breaches listed refers to alleged breaking of rules "requiring a member club to include full details of manager remuneration in its relevant contracts with its manager" related to seasons 2009-10 to 2012-13 inclusive.
City's manager between December 2009 and May 2013 was current Italy boss Roberto Mancini.
The second set of alleged breaches also refers to requirements for a club to include full details of player remuneration within the relevant contracts, for the seasons 2010-11 to 2015-16 inclusive.
The third section deals with alleged breaches of Premier League rules requiring clubs to comply with UEFA FFP regulations and the fourth set of alleged breaches relates to the Premier League's profitability and sustainability rules.
Finally, the club is alleged to have breached league rules requiring member clubs to cooperate with and assist the Premier League with its investigations, from December 2018 to date.
Last season, City clinched their its Premier League title since the 2008 takeover by Sheikh Mansour's Abu Dhabi United Group, but has yet to win the Champions League.
Pep Guardiola's men are second in the Premier League this season, five points behind leaders Arsenal after a 1-0 defeat at Tottenham on Sunday.
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© Agence France-Presse
Waste of Time; Because Court of Arbitration for Sport, will Rule in the Favor of Money.!!!
Not sure if CAS has juristiction in this case. It is Premier League rules and whatever abritration agreement the Premier League has for participating clubs that will apply. Probably a dog-and-pony-show and they get off with a meager fine. The Premier League just allowed New Castle to be purchased by some very dubious owners. Now forgetten. They will find a way to make this go away, then out-of-sight-out-of-mind. Lots of money will be mustered to stear toward such an outcome. We'll see.
Generally speaking arbitration is a voluntary dispute resolution process. Parties to a contract dispute may have agreed to an arbitration clause, but any dispute may be submitted for arbitration if the parties agree to it. The CAS only takes cases related to sports. There are literally countless other arbitrators available.
Arbitration is an alternative to filing litigation. So if the EPL is unwilling to arbitrate, the club may decide to sue in some court.
City squad in 2024 will be remnants of what it is today. Curious whose contract did not include a relegation clause. No points need to be deducted this year nor fines imposed. But City should start 2023-4 season in the Championship with a 30 point deficit, just to make it sporting. Ah, the grind of playing 46 games in matchbox stadia, and no VAR.
My first question is why did the league wait 12 years to sanction the club for alleged misconduct in 2009? Especially since its been almost 5 years since the last alleged misconduct.
Something stinks about the charges. Smells like politics.