Manchester:Manchester City has formally appealed the guilty verdict delivered by an independent commission, which found the club guilty of numerous breaches of the Premier League's financial regulations. The club announced the appeal on Friday, stating it was lodged on Thursday evening before the Friday deadline.
According to Anadolu Agency, Manchester City maintains its innocence, arguing that the commission's decision contained significant errors in law, principle, and fact. The club claims to have submitted extensive evidence to support its position.
The Premier League had announced earlier in the week that Manchester City was found guilty of all charges related to severe financial violations over nine seasons from 2009-10 to 2017-18. Additionally, three out of four charges concerning the club's lack of cooperation with the league's investigation were upheld.
The commission reported that Manchester City engaged in deceptive practices by using "sham" contracts with sponsors to inflate its revenue. It found that some sponsors paid only a portion of the fees, with the remainder covered by Abu Dhabi United Group, the club's owner. This allowed City to misrepresent its financial state, overstating revenue and understating costs by more than £900 million (1.2 billion), thus appearing compliant with spending limits.
The commission also concluded that City misreported its accounts, obscured its true financial condition, and obstructed the Premier League's investigation. Richard Masters, the Premier League's Chief Executive, stated that City's rule-breaking was systematic over nearly a decade.
While no sporting punishments have been imposed yet, potential sanctions could include fines or points deductions. The appeal will be evaluated by a three-member Appeal Board, which has the authority to uphold, dismiss, or vary the commission's findings.
Separately, the Football Association (FA) highlighted the ruling's significant implications for the integrity of the game. The FA is reviewing the decision and will determine appropriate actions, though it will not comment further while proceedings continue.
British lawmakers are also scrutinizing the case. Treasury Committee Chair Meg Hillier has inquired whether HMRC has reviewed the commission's findings or requested an unredacted report. Hillier is also investigating potential tax issues within football clubs, following a report indicating possible unpaid taxes linked to a sham consultancy arrangement involving former City manager Roberto Mancini.
Tax Policy Associates estimated that unpaid income tax and National Insurance could total £12 million (15.2 million), potentially rising to £23-24 million (30.42-31.75 million) with interest and penalties. The group emphasized that this assessment is preliminary and does not accuse Mancini or any individual of criminal activity.