2 months ago
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MANCHESTER CITY could hear the verdict on a huge legal battle with the Premier League within days.
The champions are challenging financial rules designed to stop clubs getting an unfair advantage from massive sponsorship deals.
AlamyThe appeal is separate from the case over City’s alleged 115 breaches of Prem financial rules.
But it too has big repercussions – as some rival clubs worry the top-flight’s global standing will be damaged if the Etihad club wins.
Prem chiefs brought in “associated-party” transaction (APT) financial rules in December 2021 following Newcastle’s Saudi-backed takeover.
The aim was to stop teams inflating sponsorship deals with organisations linked to the club owners.
The new rules were also intended to make sure transfers involving teams with multi-club ownerships remained fair.
The Telegraph suggest many Prem opponents would be alarmed if City win their appeal.
It’s also claimed a result is due imminently.
Rivals reckon the Prem needs to keep the financial controls.
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The fear is that losing them could create less interest in the English game at the top level across the world.
That’s because it might get more difficult for so-called smaller clubs to compete financially with bigger rivals taking advantage of sponsorship arrangements.
City launched their action in February – arguing that the rules were discriminatory.
The Times revealed that Etihad chiefs want “damages for the losses which it [claims to have] incurred as a result of [what they alleged to be] the unlawfulness of the FMV [fair market value] rules”.
City further say that other teams are just trying to “safeguard their own commercial advantages”
Prem rules state the aim of the rules is to end the “reliance on enhanced commercial revenues” from “entities linked to the club’s ownership”.
They want to ensure that such dealings don’t give clubs an “unfair advantage over domestic competitors”.
Meanwhile, in the headline-grabbing other case, City could face points deductions and even possible relegation if they are found guilty of numerous financial fairplay breaches, relating to 2009-2018.
The club deny all charges and say their case is backed by a “comprehensive body of irrefutable evidence”.
The private hearing into that matter is likely to last around 10 weeks, with a verdict expected early next year.
What City may face if 115 breaches are proved
MANCHESTER City’s fate lies in the hands of the independent commission hearing the financial allegations that have hung over the club for the past 18 months.
But while it is theoretically possible that the Etihad club could be banned from any competitions if they are found guilty it is, simply, not going to happen.
Yes, if the commission decides the Prem charges have been proven, any and all punishments are available.
That would include expulsion from the League and relegation into the lower tiers.
But nobody, seriously, in the real world, believes City will be banished from the top four levels of the pyramid and cast into the National League – the only way in which they would be ineligible to play in the Carabao Cup.
And while the FA will ratify any punishment imposed by the Prem, the commission has NO remit that allows it to impose a sanction that applies to any other competition.
As in so many potential scenarios, the word “may” can do an awful lot of heavy lifting.
I, for example, at 57, “may” be a shock signing for Arsenal. It won’t happen. But, theoretically, it “may”. If I suddenly win a few billion and buy the club, for example. Which “may” happen. But won’t.
What is more intriguing – and could cause a difficult series of conversations – is a scenario in which City, having been found guilty – a very big “if” given the club’s vehement and persistent denials of all the allegations – were to win the Champions League this season, after being given a points deduction that ensures relegation.
Under Uefa regulations, the holders of the competition have an AUTOMATIC right to try to retain their trophy.
But all representatives of a country can only play in European competition if their names are proposed by the national federation.
In other words, while people often do not realise it, no club can play in Europe without FA endorsement – normally something that is guaranteed.
It would therefore fall on the FA – after discussions with Uefa – to decide if City’s name should be put forward. Similar issues would arise if they won either this season’s Carabou or FA Cups.
As for the looming Club World Cup, City are already confirmed as participating, by dint of their 2022 Champions League win.
Fifa rules do not give holders automatic entry to competitions, so even if they win in the USA next summer, they would have to qualify through Uefa.
And if they are relegated even to the Championship, meaning at least a two season Uefa absence, they would have to win the Champions League in 2028 to qualify.
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