Man City 115 charges prediction made on expulsion and points deduction

Kieran Maguire and Stefan Borson, speaking on the 'We're Not Really Here' podcast by BBC Radio Manchester, have agreed that it's 'unlikely' for Manchester City and the Premier League to reach a settlement before the 115 charges of Premier League regulations are heard.

The English top flight charged its champions with 115 alleged breaches of financial regulations in February 2023, with teams like Leicester City watching on with interest after finding themselves on the wrong end of the rules.

The Foxes have been handed a £15 million boost in their struggles against Profitability and Sustainability Rules (PSRs) with the accounts showing a sponsorship deal for both the club’s stadium and the Seagrave Training Ground.

The full club’s accounts were released on Companies House this week, after the club released them earlier this month. That was when it was revealed that the club had suffered a pre-tax loss of £89.7 million.

It came after the club were charged by the Premier League with an alleged breach of the league’s PSRs for the period ending in June 2023. If found guilty, then City could face a possible points deduction at the start of the season if they are promoted back to the Premier League at the end of the season.

It has also been reported that City are on course to be in breach of financial rules for the current season. The EFL have already taken action in putting them under a registration embargo.

But the club still do have time to raise some funds with the accounting period not ending until the end of June. One way they can do this is by selling players, or through other money-raising tactics such as sponsorship.

The 2022/23 accounts say that “The Group and Company also entered into a sponsorship agreement with King Power Duty Free in relation to the stadium naming rights for the 2024.25 season.” Interestingly, it then adds: “and the Seagrave training ground naming rights for the 2023/24, 2023/35 and 2025/26 seasons. £15,000,000 was invoiced in the period with nothing outstanding at the 30 June 2023 (2022: £nil)."

The sponsorship agreement for the King Power Stadium only runs for the 2024/25 season. So, in theory, the club could potentially search for a new sponsor for the stadium which could potentially bring a more lucrative deal for the season after next.

It would be a similar move to the shirt sponsorship deal with FBS. The club announced a record new principal club partnership in 2021, although relegation to the Championship saw King Power reinstated as the club’s shirt sponsor.Leicester City have been handed a £15 million boost in their struggles against Profitability and Sustainability Rules (PSRs) with the accounts showing a sponsorship deal for both the club’s stadium and the Seagrave Training Ground.

The full club’s accounts were released on Companies House this week, after the club released them earlier this month. That was when it was revealed that the club had suffered a pre-tax loss of £89.7 million.

It came after the club were charged by the Premier League with an alleged breach of the league’s PSRs for the period ending in June 2023. If found guilty, then City could face a possible points deduction at the start of the season if they are promoted back to the Premier League at the end of the season.

It has also been reported that City are on course to be in breach of financial rules for the current season. The EFL have already taken action in putting them under a registration embargo.

But the club still do have time to raise some funds with the accounting period not ending until the end of June. One way they can do this is by selling players, or through other money-raising tactics such as sponsorship.

The 2022/23 accounts say that “The Group and Company also entered into a sponsorship agreement with King Power Duty Free in relation to the stadium naming rights for the 2024.25 season.” Interestingly, it then adds: “and the Seagrave training ground naming rights for the 2023/24, 2023/35 and 2025/26 seasons. £15,000,000 was invoiced in the period with nothing outstanding at the 30 June 2023 (2022: £nil)."

The sponsorship agreement for the King Power Stadium only runs for the 2024/25 season. So, in theory, the club could potentially search for a new sponsor for the stadium which could potentially bring a more lucrative deal for the season after next.

It would be a similar move to the shirt sponsorship deal with FBS. The club announced a record new principal club partnership in 2021, although relegation to the Championship saw King Power reinstated as the club’s shirt sponsor.

What will happen to Man City?

The charges against Man City include accusations that the club failed to provide accurate financial information and did not cooperate with investigations spanning nine seasons (2009/10 to 2017/18). Manchester City vehemently denies any wrongdoing and an independent commission is set to hear the case later this year.

When asked if there's a possibility that the two parties could agree on a settlement before the hearing, football finance expert Maguire and lawyer Borson, who once served as a financial adviser at the Etihad Stadium, shared their views. "It would certainly save a lot of money on behalf of both sides," said Maguire.

"It could mean that both parties could claim a victory, but I think in terms of public opinion and the reaction there's likely to be from both the media, and I suspect from other clubs, it's not really something that would be palatable to the Premier League nor City."

Borson remarked: "There are ways in which it could occur within the Premier League rules. But I think they missed their window for a settlement. Now that it's public and now that we're so close to the hearing, it would be very unlikely for them to find common ground politically to get this settled.", reports Football London.

In a May interview with The Times, Richard Masters, the Premier League CEO, offered some insights: "All we have said is that a date has been set for the hearing. We haven't said when that is. Our rulebook requires these commissions to be held in private, and everything to be confidential."

Subsequently, speaking with the Evening Standard, Dan Chapman, a solicitor and head of employment and sports at Leathes Prior, mentioned that no punishment should be dismissed including fines or even expulsion from the Premier League. "Considerable uncertainty remains on the current status of the Premier League proceedings against Manchester City."

Chapman also added: "It would appear that these charges are far more serious, if they are proven, than the charges which Everton and Nottingham Forest recently admitted. Those clubs were charged with a breach of spending rules that they admitted."

He further explained the gravity of Manchester City's situation: "This case is entirely different, 115 charges which relate, it would appear, to serious impropriety which Manchester City robustly deny. The number and complexity of the charges will present huge challenges to all involved and it is not unlikely that the hearing could be delayed in full or in part."

"The independent commission that will hear the case will have almost limitless powers, and sanctions could range from fines to points deductions to expulsion from the Premier League. Manchester City will of course be aiming to be cleared of all charges, and nothing should be ruled out in this quite extraordinary case."