Manchester City could face consequences beyond sporting sanctions if they are found guilty of breaching the Premier League’s financial regulations, with the UK Treasury Committee contacting His Majesty’s Revenue and Customs (HMRC) over the case.
The Italian Enzo Maresca-managed club is the subject of an ongoing Premier League investigation into alleged financial rule breaches. According to Marca, citing Sky Sports, the Treasury Committee has written to HMRC to ask about the potential tax implications of that investigation.
HMRC is the UK authority responsible for taxation, payments and customs. It could examine whether Manchester City paid the correct amount of tax during the nine seasons in which they have been found to have breached the Premier League’s financial regulations.
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One example potentially relevant to such an examination is Roberto Mancini’s reported dual contract while he was Manchester City manager.
The arrangement was revealed by the German magazine Der Spiegel in 2018 through documents published as part of the Football Leaks disclosures. Emails released at the time appeared to indicate that Mancini, who is currently manager of Italy, had two agreements.
The first was a contract to manage Manchester City, under which he received £1.45m. The second involved annual payments of £1.75m to a company linked to Mancini.
That case is only one example, and there is currently no indication that HMRC has reached any findings or taken action against Manchester City. The immediate development is that the Treasury Committee wants confirmation that the tax authority is investigating what happened.
The potential tax consequences would therefore be separate from any sporting punishment that could arise from the Premier League’s investigation.
