‘Welcome to Shamchester’: PM dragged into $1.7 billion scandal rocking England
Manchester City face a Saturday (AEST) deadline to appeal against findings that they breached Premier League financial rules, opening the next chapter in a case whose ultimate consequences for the club and English football remain deeply uncertain.
Two days after one of the most serious disciplinary verdicts in the English game, no sporting sanction has been imposed and City, who have denied any wrongdoing, remain top of the Premier League.
Manchester City players pose with the FA Cup. AP Photo/Richard Pelham
Enzo Maresca’s side have opened the season with five wins from five and will resume their title challenge at Liverpool on October 12 (AEST), with business on the pitch continuing largely as usual despite the findings hanging over the club.
Off the field, however, attention is firmly on the appeal deadline and whether City challenge the commission’s findings over systematic financial breaches spanning nearly a decade - a move that could extend a saga already years in the making and potentially delay clarity over any punishment.
"It's not ideal at all," said sports lawyer Tom Keane, a partner at Brandsmiths.
"It's just the unfortunate nature of these legal proceedings, the size of them, that it's going to take time, and there's this doubt now hanging over the competition that's currently in play, which is awful for fans, players of all clubs, including Man City.
"You just want an outcome, don't you? But it clearly could drag on beyond the end of the season, which again is terrible because it puts more questions around certain achievements if City go on to have another good season."
The verdict may have answered one question, but it has opened dozens more. How long will the appeal take? When will sanctions be decided? Could the outcome alter league tables, prize money distributions or European qualification places? And what happens if other clubs begin seeking compensation?
Under Premier League rules, an appeal hearing should be held within 12 weeks of an appeal being lodged, with a decision due within 30 days of the hearing concluding.
The league did not respond to a request for comment on whether there is any flexibility on deadlines due to the sheer scale of the case - the index to the independent commission’s document bundle alone was 750 pages.
"With the complexity of the case and the number of charges, is this really something that can be done in that timeframe? Is it six months? Is it 12 months?" said Keane, who added that legal fees will already be in the tens of millions of pounds.
He believes the appeal should come before any sanctions, saying: "It would surely make sense not to waste time and expense on a sanctions hearing when you're going to have an appeal which could fundamentally change the outcome."
Keane said those managing the operation of the case should set a practical and rigid timeline “for the benefit of everyone.”
"From the outside, it appears that the approach taken to this case by City has been to create delay," he added.
“They have kicked it down the road this far, and you would expect again with an appeal, the amount of evidence - we’ve not seen it, we’ve just seen the decision - that City will be able to kick the final result further down the road again.”
The uncertainty is already spreading beyond football.
The case reached Parliament on Friday (AEST), with Treasury Committee Chair Meg Hillier asking Britain’s tax authority HMRC what action, if any, it was taking in response to the commission’s findings.
In her letter, Hillier sought assurances that HMRC was "seized of the importance" of the findings and questioned the tax authority about its response.
She asked whether HMRC was aware of the commission's findings, whether it had requested or been provided with an unredacted copy of the report and what assessments it had made of any potential tax implications arising from the case.
The British Prime Minister has also been dragged into the maelstrom, with No.10 forced to amend its own clarification over Andy Burnham’s comments that he would be “really concerned” to lose City’s owners.
British Prime Minister Andy Burnham at an Everton match. Getty
“As the prime minister made clear, the initial judgment is serious and there can’t be any suggestion that anyone is above the rules,” the new statement said.
“He also stressed that it is an ongoing independent process. It is essential that it is allowed to run its course and the outcome respected. Wherever wrongdoing is established, those responsible should face the appropriate consequences.”
Burnham was mayor of Manchester before becoming prime minister.
“I would be really concerned to lose them. They’ve been such a huge partner in the building of modern Manchester. Obviously, the building of Manchester City into the global force that it is,” he told the BBC this week.
“I can’t intervene more in the process. It would be wrong for me to do that. It would be wrong, I think, to jump to a conclusion before having really studied all of the detail, but obviously, it’s ongoing, and because it’s still contested by Manchester City, then I think it’s right that I don’t say much more.”
Etihad Airways, City's principal sponsor since 2009, said this week it was seeking legal advice after rejecting findings linked to commercial arrangements referenced in the case.
Rival clubs, meanwhile, are understood to be exploring potential compensation claims over lost prize money, Champions League income and other financial opportunities.
A billboard in Manchester after City had been found guilty of all charges. Getty Images
Among supporters, emotions range from anger to disbelief. Near Old Trafford, a giant billboard declaring "Welcome to Shamchester" appeared this week.
It played on the league’s statement that City used “sham” commercial contracts as part of schemes to inflate revenue and understate costs by more than $1.7 billion.
Fan discussions that would normally revolve around tactics and transfers have also given way to talks over beers in pubs about sanctions and appeal procedures.
For Keane, the ramifications may ultimately stretch far beyond the Premier League and Manchester City.
"Dealing with the City case is almost now the easy part," he said. "What happens next, with clubs who believe they missed out on prize money, commercial revenue or Champions League football, is where things could become really complicated."
He mentioned the potential for legal action from players and agents.
Until appeals are exhausted, sanctions determined, and any subsequent legal claims resolved, English football finds itself in an unprecedented state of limbo: a club found guilty of serious financial rule breaches, yet still leading the Premier League and waiting to discover the true cost of the verdict.
Manchester United Premier League champion Mark Bosnich told Stan Sport’s Football Bite that the scandal was “the biggest challenge the Premier League has ever faced” and said the game must learn from Serie A’s ‘Calciopoli’ debacle.
Juventus were hammered following a corruption case surrounding the manipulation of referee assignments that rocked Italy two decades ago.
While many clubs faced heavy sanctions including points deductions, Juventus paid the biggest price following, as they were stripped of two Serie A titles and relegated to Serie B.
The 2004-05 Serie A season no longer has a champion, while the 2005-06 title was awarded to Inter Milan.
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