Premier League threatens Manchester City with harsh sanctions

On Tuesday evening the Premier League announced that Manchester City was found guilty on most counts in a four‑year financial scandal – a verdict that immediately catapulted the ten‑time champion Erling Haaland, under contract with the club since 2022, into the headlines.

Allegations and Financial Balance

An independent commission, after four years of investigation, concluded that City had artificially inflated revenue and reduced costs through so‑called “dummy contracts” with sponsors. According to the statement, the dummy arrangements supplied the company with approximately £900 million (about €1.05 billion) in additional revenue during the period from 2009/10 to 2017/18.

In addition, City concealed payments and thereby breached the financial regulations set by the Premier League and UEFA, without cooperating with investigators at any point.

Possible Sanctions and Precedents

The league is considering a wide range of penalties – from fines to point deductions and even a possible forced relegation. All points awarded in previous cases range from ten points for Everton three years ago (reduced to six on appeal) to four negative points for Nottingham Forest and six points for Leicester City, which after its 2016 championship now plays in the third‑tier League One.

Dock points loom as Manchester City face possible relegation to League Two

One of the possible penalties could see the ten‑time champion drop as far as the fourth tier, League Two, a scenario that has been rare in England's top flight so far.

Reactions from the Football World

“This disciplinary process and this decision are the most significant in the history of the Premier League,” said Richard Masters, chief executive of the Premier League, emphasizing that the process is being expedited to provide clarity for the league, the clubs and the fans.

Kieran Maguire, England's football finance expert, told the BBC that the Premier League now has its own channel to review sanctions imposed by the respective boards – a point that is particularly relevant in the case of Manchester City.

David Bernstein, former chairman of Manchester City, called for a forced relegation in a BBC interview if the appeal fails, and stressed: “And I say this as a supporter and fan for 70 years.” Despite the already suffered reputational damage, the looming penalty could deter future stars such as Erling Haaland, if the final decision is still pending.