Manchester City could be relegated from the Premier League and then demoted to League One if the club is found guilty of financial fair-play breaches, with a final decision expected at the end of January.
The club has repeatedly been linked with allegations concerning financial fair play. Manchester City were previously banned from the Champions League and fined 30m euros, although those sanctions were later overturned and the financial penalty reduced to 10m euros.
An independent commission has ruled that Manchester City artificially inflated their income and concealed their true financial position between 2009 and 2018. It found that the club had breached the Premier League’s financial fair-play rules through purportedly false sponsorship agreements and other methods.
The findings included alleged arrangements involving sponsorship contracts and image rights, hidden payments and attempts to obstruct the investigation. Those issues formed part of 114 of the 115 charges against Manchester City that were upheld.
The remaining question concerns the punishment, details of which were reported today.
Points deductions could mean two relegations
Oliver Holt, the chief sports columnist at the Daily Mail, said Manchester City could face a points deduction so severe that relegation from the Premier League would be guaranteed, even if the club won every remaining match.
The Premier League authorities are also reportedly considering a further deduction in the following season. That would result in Manchester City dropping into League One.
One possibility discussed was direct relegation to League Two, the fourth tier of English football. However, according to the Daily Mail, the more realistic scenario is for points to be deducted during the current campaign and again next season.
Manchester City are preparing an appeal, meaning no final decision has yet been made. The ruling is expected approximately at the end of January.
The situation comes as Manchester City lead the Premier League after seven matches with a 100% record. Tottenham, who spent about 366m euros on transfers last summer, are bottom of the same table.
Tottenham have spent 1bn euros on transfers since the summer of 2023. As a result, even if they retain their place in the top division on sporting merit, they could potentially join Manchester City in the Championship next season.
Wolverhampton Wanderers, Southampton, Blackburn, Bolton, Wrexham and more than 20 other clubs would then be in contention with Manchester City for the Championship title. Clubs such as Preston North End would be expected to fight to retain their place in England’s second tier, while the prospect of hosting some of the world’s leading players would offer an attractive opportunity to those teams.
That would depend on Manchester City’s players remaining at the club.
Manchester City last played in the Championship during the 2001-02 season. Since then, they have been ever-present in the Premier League and have won the English title eight times, the FA Cup four times, the English Football League Cup seven times and the English Super Cup four times.
They have also won the Champions League, UEFA Super Cup and FIFA Club World Cup once each.
If the proposed sanctions are imposed, Manchester City could disappear from the top levels of the game for several years.
Konstantin Litsin
