Manchester City’s 115 breaches could blow the playhouse down

AS FAR as most football fans are concerned, Manchester City are guilty and deserve to be punished for their alleged 115 breaches of Premier League rules. Why it took so long to discover these breaches in the first place is a mystery given the extensive period under review. Manchester City claim they are innocent and, you have to presume, they have the financial muscle to get the result they want. That these “breaches” went on for so long also implies City thought they were doing nothing illegal; they are an international business organisation, supposedly well-run, smart and staffed by experts and best-in-class professionals. City may have done the wrong thing 115 times, but they aware they were doing so?

Disgruntled and bitter Everton fans question why City have not been penalised, that they have not received a points deduction for breaking rules. The difference between Everton’s punishment and City’s possible problems is clear. Everton broke the limits of the amount of money they can lose over a given period. They admitted it, they cooperated but there was no denying they were guilty. City have some major issues to solve about their practices, but they are unproven and they are complex. The end result may be a financial penalty, a points deduction or a ban from something or other. If the great body football had its way, City would be lynched, hung out to dry and would suffer humiliating relegation. There’s an element of “eat the rich” about it all, but at the moment, they are innocent until someone determines they are guilty. And, in all probability, the legal machine will ensure the outcome is nowhere near as brutal as the measures the mob are calling for.

City’s position as a monied club with the backing of an oil-rich Arab state makes it easy for other clubs and their fans to resent them. It has to be remembered that throughout football history, the most successful teams are often disliked, mainly out of envy, disapproval of their ultra-professionalism, financial advantages or just out of sheer bloody mindedness. Take the financial aspect out of the equation and everything about City is actually quite positive, but you cannot tell opposition fans that and expect acknowledgement that they are worthy champions. City are beneficiaries of the new world order in football and most clubs, for all their bleating about unlevel playing field (which has always been the case) would welcome the type of ownership they enjoy. They might not admit it, but the way the industrialised game has evolved has created a demand and a market for extremely wealthy owners. It’s not necessarily right, but it is a fact.

The legal battle between the Premier and City may be a very significant moment in the history of football governance and club power. City are wealthier than the Premier League and they have more influence. This is where City’s ownership will reveal its power. The financial difference between the top Premier clubs is not, in itself, a case of chasms filled with cash, in terms of spending power, we are talking of a £ 100 million or so. Let’s translate that into assets – maybe it is a Jack Grealish-sized transfer every season. Has Grealish made City stronger? Not really. City have been pushed over the last two seasons, so the gap between them and the next team (Arsenal) is not as huge as the balance sheet might suggest. But in cases where City have to go to court, the economic clout of Abu Dhabi against the Premier League can only have one winner, and it is not the Premier. They will have the lawyers, accountants, analysts and witnesses they need to win the case. Which could have ramifications for the future of the Premier League. Furthermore, a good conclusion for City may inspire other clubs to test the league over a broad range of issues.

Of course, if City do win the day, that will not silence the critics who will claim corruption and talk of sinister agreements made in dark corners. But what will defeat for the Premier do for its reputation, will its teeth be instantly blunted? The European Super Leaguers in continental Europe may start to rub their hands because any hint of fragmentation will do their cause no harm, and if City are defeated, that may also be good for their plans if Abu Dhabi decides to talk of breakaway.

One senses that City’s situation may be the catalyst for others to revisit their financial reporting over the past decade and ensure everything is really in order. Because one fallout of this sorry chapter may be a clampdown by the Premier on all things regulatory and financial. Whatever the result, there needs to be greater clarity for the clubs around what they can and cannot do, whether it is Associated Party Transaction (APT) rules, Profit & Sustainability (PSR) or financial fair play. It is also baffling why it takes football clubs so long to produce their annual accounts when huge, complicated global corporations are able to announce their financial reports within weeks of the end of a quarter.

The next few months will be crucial for many aspects of football: the position of Manchester City; the reputation and future of the Premier League; the regulatory landscape in football; the competitiveness of Premier League clubs; and the revival of Super League talk. It is going to be interesting, but there will be cheers and tears.

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