Manchester City faces EPL expulsion over financial manipulation

The English Premier League (EPL) independent commission announced on the 29th (local time) that there was a financial manipulation worth 1.6 trillion Korean won over nine seasons involving EPL powerhouse Manchester City (Man City), sending shockwaves through the global football community.

According to prior reports by sports media outlet The Athletic, the independent commission reportedly found 114 out of 115 initially raised financial regulation violation cases guilty. Consequently, there are now even suggestions that the Manchester City club itself could disintegrate and disappear from football history.

The EPL independent commission’s findings indicate that Manchester City inflated its revenue through financial manipulation by entering false contracts with various commercial partners to inflate sales and hide debts, and spent an unfairly large amount of money on player acquisitions. In essence, the conclusion is that Manchester City violated numerous EPL financial regulations to acquire players, engage in unfair competition, and achieve unjustified championships.

Local media and experts suggest that Manchester City could face unprecedented severe penalties. Considering cases like Everton and Nottingham Forest, which received point deductions for just one or two financial regulation violations, Manchester City—found guilty in 114 cases—could face long-term penalties such as point deductions of over 30–40 points per season, relegation to the third division (Football League 1), or even expulsion (suspension of eligibility) from the EPL itself.

Under EPL regulations (Section W), the EPL’s independent disciplinary committee has the discretionary power to impose not only point deductions and fines but also suspension of league eligibility and expulsion. The potential fallout could be greater than the 2006 Calciopoli (match-fixing) scandal that shook Italy’s Serie A, where Juventus was relegated.

There is also the possibility of retroactive cancellation of historical records and titles. The club’s six league championship trophies accumulated over the past decade, including their first EPL title in the 2011–2012 season, achieved with Sergio Agüero’s dramatic last-minute goal, and the treble (three titles) in the 2022–2023 season, could be confiscated or stripped from official records.

In such a scenario, teams that narrowly missed the trophy after fierce title races—such as Jürgen Klopp’s Liverpool, Manchester United under José Mourinho and Ole Gunnar Solskjær, and Mikel Arteta’s Arsenal, who finished as runners-up (second place)—could inherit the championship titles, or the winning team for those years could be left blank. Given the precedent from the Calciopoli scandal, where Juventus’s titles were stripped and a mix of runner-up inheritances and blank entries occurred, scenarios where legendary Liverpool midfielder Steven Gerrard, who left England without a title, could retroactively receive an EPL winners’ ring are also being discussed.

If the severe penalties are finalized, Manchester City could face a catastrophic scenario involving a series of lawsuits. First, there is the possibility of the club owners losing their eligibility through the UK authorities’ ‘Fit and Proper Person Test.’ If the systematic financial manipulation and disguised funding activities spanning 114 cases are confirmed, Sheikh Mansour, Manchester City’s club owner and a UAE royal family member and deputy president, along with Abu Dhabi United Group (ADUG), could lose their ‘fit and proper’ ownership status, leading to a forced sale of the club. A precedent exists with Roman Abramovich, the Russian oligarch and former Chelsea owner, who lost his ownership eligibility in 2022 due to UK government sanctions following Russia’s invasion of Ukraine, resulting in Chelsea’s forced sale.

The biggest crisis would be a wave of lawsuits from other clubs, including EPL teams, if the penalties are confirmed. Local law firms have already begun legal responses and rights preservation measures. Top-tier clubs that missed championships and lost prize money and commercial revenue due to the illegal financial manipulation, teams that unfairly missed Champions League (UCL) qualification and suffered losses ranging from hundreds of billions of won to 100 billion Korean won in broadcasting rights and participation fees, and lower-tier teams that saw reduced dividends or were unfairly relegated by narrow margins could all file damage compensation lawsuits against Manchester City.

In a prior case, Everton received a point deduction for financial regulation violations, and Burnley, which was relegated to the second division after a relegation battle with Everton, was awarded approximately £40 million (about 70 billion Korean won) in compensation. If dozens of clubs that suffered damages over nine seasons simultaneously claim compensation, Manchester City could face a financial bomb of trillions of won in compensation payments, leading to potential bankruptcy.

However, some local observers suggest the penalty severity could be lower than expected. The close cooperative relationship between UK Prime Minister Andy Burnham and the UAE is seen as a potential variable.

Prime Minister Burnham has been highly proactive in attracting Middle Eastern capital since his time as Manchester’s mayor and has continued investment discussions with the UAE to overcome the UK’s economic downturn since taking office. Observers note that if the EPL imposes excessively harsh penalties on Manchester City, Middle Eastern capital could withdraw investments, potentially causing Manchester’s economy to collapse, making these factors influential in the disciplinary process.

Manchester City strongly maintains its innocence. In an official statement released that day, the club said, ‘We are disappointed and surprised by the EPL’s announcement,’ and emphasized, ‘The club is innocent of the charges raised by the EPL, and there exists clear, irrefutable, and extensive evidence supporting the club’s position in this matter. Therefore, the club will persistently respond to all relevant regulatory and legal procedures and will take preemptive action if necessary.’

While Manchester City intends to exhaust all legal defenses through appeals, the prevailing local view is that ‘it will be difficult to overturn all 114 guilty verdicts from the independent committee.’

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