David Kogan: Man City verdict could put club leadership under scrutiny

English football’s independent regulator has warned that Manchester City’s financial-rule verdict could trigger scrutiny of the people running the club if the findings survive appeal. Independent Football Regulator chair David Kogan said the commission’s decision had created “serious issues”, while stressing that the process between City and the Premier League is not yet complete.

City have said they will challenge the ruling, calling it unsafe and alleging material mistakes in law, principle and fact. The appeal will be pivotal before the regulator considers whether findings against individuals warrant action under its owner, director and executive suitability tests.

Kogan said the regulator can take league findings into account and will use its powers where there is clear evidence that individuals have committed wrongdoing. He said any intervention would be aimed at protecting the sustainability, honesty and integrity of English football, but added that the IFR will wait for further developments while the case remains live. He called for a swift resolution in the interests of supporters.

In its strongest potential measures, the IFR can require directors or senior executives to leave club boards and can order an owner to sell their stake. No such step has been announced in relation to City.

City appeal as sanction decision approaches

The independent commission found that City deliberately sought to get around Premier League rules over nine seasons, using arrangements that inflated income and concealed costs. The findings cover more than £900 million in revenue and costs linked to compliance with Premier League and UEFA regulations.

A further hearing before the same commission will determine the punishment. Available sporting sanctions could include a substantial points deduction or, at the most severe end, expulsion from the Premier League. Other top-flight clubs have pressed for the matter to be concluded before the campaign ends.

City were found to have used a disguised funding arrangement involving Abu Dhabi-linked companies. Those firms paid only part of the amounts shown in the club accounts, with Abu Dhabi United Group, through which Sheikh Mansour owns City, making up the remainder. The arrangement was found to have added more than £830 million to reported revenue from 2009-10 to 2017-18.

The ruling also found that City overstated image-rights income by almost £74 million and understated staff-contract liabilities by close to £17 million. The commission concluded that the club made sustained attempts to obstruct and frustrate the Premier League investigation.

Chief executive Ferran Soriano told staff in a video message that the commission had accepted the Premier League’s “conspiracy theory”. City have won eight English titles since Sheikh Mansour’s 2008 takeover, making a major sporting penalty a potentially seismic development for the club.

Former City manager Pep Guardiola, who left at the end of last season after winning six Premier League titles, publicly backed the club on Wednesday. In a message posted through the Pep Team X account, he said he stood with the owner, chairman, Soriano, players, staff, coach Enzo Maresca and supporters, adding that the club would come through the situation together.