Manchester City found guilty of breaking Premier League rules

World Business Report

This episode of World Business Report covers a series of significant global developments, beginning with Manchester City being found guilty of over 100

Key takeaways

• Manchester City was found guilty of the majority of 115+ charges regarding breaches of Premier League financial rules between 2009 and 2018.
• The summit between President Trump and President Xi Jinping concluded without resolving core tensions regarding AI, Taiwan, or trade tariffs.

Main topics

• Manchester City financial investigation
• US-China diplomatic summit

Notable quotes

The biggest inflation risk in global energy markets right now isn't actually the price of oil. It's the price of moving oil.

Conclusion

The episode highlights how regulatory findings, geopolitical shifts, a

Transcript preview

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Speaker 3 (1:10) One of the biggest names in world football found guilty of breaking financial rules. What happens to Manchester City now? Speaker 2 (1:17) There's a huge range of possibilities here. Monetary sanctions, relegation, loss of points and so on. It's a big club. They've got the infrastructure to fight it. They've got the money. I think it'll be all right. Speaker 3 (1:29) It's World Business Report from the BBC World Service. Speaker 3 (1:35) I'm busy at Dubai. Coming up, the potential punishment facing Manchester City. Also, Trump and Xi end their summit. But have the US and China really moved any closer? And nearly 3 million Volkswagen and Audi cars are recalled over fears their steering could fail. Speaker 3 (1:56) So Manchester City, one of England's most successful football clubs, has reportedly been found guilty of the majority of more than 100 charges of breaking Premier League financial rules. Well, the punishment is yet to be confirmed, but it could range from a fine or points deduction to, in the most serious scenario, expulsion from the Premier League and the hundreds of millions of dollars that goes with membership of the league. Neil Murrow has more on how we got here. Speaker 2 (2:23) In February 2023, City were charged with more than 100 breaches of the Premier League's financial rules following a four-year investigation. The club was referred to an independent commission over allegations it breached financial rules between 2009 and 2018. Over that period, City won several trophies, including the Premier League three times, plus three League Cups and an FA Cup. The charges cover the managerial tenures of Roberto Mancini and Manuel Pellegrini, plus the first two years of Pep Guardiola's period in charge. The Premier League told the Commission that City had breached football rules that require clubs to provide accurate financial information that gives a true and fair view of the club's financial position. In its defence, City denied all the charges, saying their case was supported by irrefutable evidence. However, it seems that the Commission believes City did break the rules. As for the club's punishment, that remains unclear. The Premier League has so far declined to comment, while Manchester City say the process remains ongoing with significant elements to be completed. The appeals process could take many years to play out. Speaker 3 (3:35) Neil Morrow there. Well, David Bernstein is a former chairman of Manchester City and he spoke to the BBC shortly after the news came out. Speaker 2 (3:42) First of all, this is very personal to me. This is my club. This is a club I've supported since 1954, if you believe that long ago. And I chaired, as you just said, for five years. So this is really personally painful. I feel almost in a state of shock at this news. And I have to say, I feel incredibly sorry for our wonderful fans, great supporters who supported the club through thick and thin and now find themselves with this huge issue the club is facing. The whole area of sanctions, there's a huge range of possibilities here, monetary sanctions, relegation, loss of points and so on. So it's impossible to say what's going to happen. And the repercussions in terms of litigation with other clubs are just huge. And, you know, in trying to assess this, one's got to look at what happened to Glasgow Rangers, where they were guilty of different but very serious offences. And, of course, Edmonton and Notts Forest, who were treated pretty heavily for, on the surface, much lighter charges. So this is a real, real problem. Speaker 3 (4:50) Well, that was David Bernstein, former chairman of Manchester City. Well, this was the reaction of some Manchester City fans speaking outside their home ground at the Etihad Stadium in East Manchester. Speaker 5 (5:01) Regardless of what happens, we're City fans first and foremost. Do I agree with the rules? No, but if they broke the rules, then they broke the rules. I don't want to say something's been tainted. We're not at the bottom of this. There's still things to go on in the background. It's a big club. Speaker 2 (5:16) They've got the infrastructure to fight it. Speaker 5 (5:20) And Speaker 3 (5:20) I've been speaking to the BBC Sports' Dale Johnson and I asked him why Premier League rules limit how much money club owners can put into their teams. Speaker 5 (5:30) Yeah, so the Premier League runs a rule which is called profit and sustainability and that really does, it's supposed to limit losses. So you can't just put limitless amounts of money in. and then end up losing money by spending a lot of money on players or on managers or on contracts, on that type of thing. So it's supposed to create a level of fairness in terms of the way you operate your club. And clearly in the case of Manchester City, the allegation is that they Speaker 3 (5:59) didn't behave like that. And are the hurt of this is the accusation that City broke those rules in a way that allowed them to spend more on players than they otherwise would have been able to. Speaker 5 (6:12) Yes, so that's sort of where the crux comes down to it, because Manchester City, obviously, over the 10-year period where this applies to 2009 onwards, they won several titles, they signed some of the world's best players, and they had a great amount of success. And, of course, obviously, the accusation is if you're spending above what you're declaring and what you're bringing in, then clearly you're gaining a sporting advantage by signing these players that enable you