The announcement the other week that City had finally been declared 'guilty' on 114 of the 115 financial irregularities charges brought against them by the Premier League has caused quite a furore over the international break. Almost all of that ruckus was naive, ill-informed,... and utterly beside the point. Nothing has actually happened yet; nothing is going to happen for a long time - probably ever. This latest announcement has stirred up a storm-in-a-teacup as sports journalists desperate to whip up clickbait copy have been manufacturing endless pointless bloody stories and discussions about it. I didn't want to be dragged into following suit; but I've decided that I will write something on it - as briefly and pithily as possible (so, not very brief...) - just to explain what utter bloody nonsense it all is.
Here then are my thoughts on various aspects of the City scandal...
It's not nearly over yet
Although the League's statement last week about the outcome of its hearing into the allegations of financial malpractice against Manchester City looks pretty damning, the case is probably still a long way from any final resolution. It took over four-and-a-half years after the Premier League instigated its investigation before the Independent Judicial Commission finally met to hear the evidence. It's taken nearly another three years for them to feel ready to announce their verdicts. And City then still had a right to immediately appeal those verdicts - before any sanctions were announced - which, unsurprisingly, they did. And that appeal process could still drag on on for a while yet. Although the second hearing is severely time-limited, having to convene within 12 weeks of the date of the appeal and being restricted to a very brisk five-day maximum, it will no doubt take the maximum time for a panel to be selected and for both sides to prepare their cases again. Even that timeframe is unreasonably short; and if things were to happen any faster than that, if there were any appearance that the League has been trying to 'fast-track' the appeal hearing to get to a quick resolution, that would only play further into City's hands, giving their lawyers more ammunition for claims that the proceedings were not truly 'impartial'. Even if the same decision is rendered a second time, there can then be an appeal against any proposed sanctions. The 'chattering classes' online are all acting as if sanctions are imminent, about to be announced this season. That's nonsense: this business could still drag on for a long time yet.
The final conclusion of the Judicial Commission hearings, still probably at least four or five months away, won't be the end of it; it will barely even be the beginning - because if the decision still goes against City, they will assuredly take the matter to court, to challenge the fairness and impartiality of the Judicial Commission and its findings. And, since the kind of sanctions being touted as likely in the case would be catastrophic and irrevocable, City would have no difficulty in obtaining injunctions to block any such sanctions from being imposed until that litigation is concluded. That might take a few years more; and if they eventually lose in the court of first instance, they will take the matter to the Court of Appeal - another few years at the very least (there's a long waiting-list for cases to get into the higher courts; and they tend to take a long time to prepare too); and if they lose there, they could try to take it all the way to the Supreme Court.
We could still be ten or fifteen years away from any 'final resolution' of this matter. And I would confidently bet that the League will run out of the money, or simply the will, to keep fighting the case long before that. Indeed, I would say they have been foolish to pursue it even this far, given that, ultimately, they cannot possibly win. (And that's not at all to suggest that City must be innocent of the accusations against them; simply that in practical terms those accusations are almost sure to be unprovable to the satisfaction of a real court.)
Also, although, of course, in the popular mind, Etihad Airways, are indistinguishible from their owner, Sheikh Mansour, they are a separate legal entity - an important fact which the League seems to have naively overlooked so far. Since the core allegations against City involve supposed deceptions in regard to sponsorship payments being made by Etihad to the club, they are intimately involved in and affected by these proceedings; and the fact that they have apparently not been included in the hearings in any way - or asked to submit evidence - is a further massive weakness in the case the League has attempted to construct against City. More than that, it is a potentially disastrous tactical blunder, as it opens up a possible 'second front' of legal manoeuvring, as was signalled by the airline's press statement last Wednesday. The airline could challenge the legality or fairness of the Judicial Commission on similar grounds to the club; it might also possibly sue the League for libel. It is a nightmare for the League: they are going to get battered on all sides.
Why the case looks so unpromising for the League
UEFA mounted a case against the club over the same kind of offences much more swiftly in 2018-19; but their guilty verdict was rapidly overturned by the Court of Arbitration for Sport, who found the evidence against City to be insufficient to support the charges (although they did find against them on a couple of lesser charges of being 'uncooperative'). That's not a good start. It is pretty certain that any proceeding in the English civil courts would reach a similar outcome. (The League's arbitration agreement with the member clubs specifically excludes appeal to the European CAS; but they can't block related actions in the domestic courts.)
Moreover, the leaked emails pertaining to the case would appear to show that we are not merely dealing with the kind of technical breaches of financial regulations, the 'sharp accounting practices' which almost all clubs have indulged in from time to time, but a blatant and thoroughgoing conspiracy to fraudulently doctor financial records - a conspiracy which ought to be subject to criminal investigation of the perpetrators. But, as yet, neither the Police nor the Crown Prosecution Service in the UK has shown any interest in getting involved in the case; again, not a good sign. (This may just be because the UK Government are so in thrall to Mansour and the Abu Dhabi government that they feel they dare not become directly involved in the matter, rather than because the Police and the CPS really think there is obviously no case to answer - but that might be interpreted as an even worse sign, if there is such high-level political resistance to pursuing the matter.) Even worse, it seems that the League has not referred the matter to the Police for consideration, or offered to share its supposed 'evidence' with them; this again creates an appearance of weakness in their case against City.
Without a criminal investigation, access to the crucial evidence is likely to remain limited. A private plaintiff usually has limited resources to unearth evidence independently, and is largely reliant on the other party acting in good faith in the 'discovery' process and agreeing to promptly hand over all relevant documents requested. With a party determined to obstruct or hinder the process, there are all kinds of ways in which documents can be lost, hidden, or doctored. And another favourite tactic is simply to try to overwhelm the opponent with the sheer mass of potential evidence handed over - "Oh, you want to see all of our confidential emails? Here are 2 million of them. Good luck!" This is why, in practical terms, it is very, very unlikely that the League is going to be able to meet the evidential threshold necessary to satisfy a proper court that its charges are well-founded.
Moreover, the basis of the Judicial Commission's decision seems to have been that they chose to favour some of the evidence and arguments over others, and rejected most of City's submissions on the key points, flat out accusing witnesses of 'lying' and 'concocting' stories. That might well be the case, but it is very, very, very difficult to prove - and it does tend to suggest a lack of impartiality by the Commission. Such extreme accusations could even potentially lay the Commission open to libel charges.
The only way I can envisage that the case might suddenly break in the League's favour is if a senior member of the City management team, someone intimately involved in the conspiracy, should decide to defect from the Mansour camp and offer testimony against them. No sign of that happening yet. The paper trail, I fear, is simply never going to be adequate, even on unravelling all the complexities of the financial subterfuge that has supposedly gone on; it is almost certainly never going to be sufficient to prove that key witnesses were lying - unless one of them comes out and admits as much.
And in cases of this complexity, the sorry truth is that the most expensive lawyers always win. And City can afford better lawyers than the League. They look set to fight and fight and fight this issue through every possible avenue - and eventually they will exhaust the League's resources to continue the battle.
The system is partly to blame
Again, this is not to excuse the offences that the City management appear to have committed, but... I do sympathise a little with their alleged belief that they could get away with it - because the League's regime of financial regulations has always been a joke. They revise them every few years, but they seem to be perpetually badly framed, dangerously ambiguous on key points; and with such glaring oversights in them that massive loopholes can easily be found (like Chelsea's regularly being able to amortize its huge transfer spending over several years by signing young players to super-long contracts). The regulations are not framed securely enough, and the supervision and enforcement have been feeble.
With a system like this, you really need almost continuous real-time reporting from the clubs, and the threat of regular spot-checks by inspectors - rather than just allowing clubs to kick problems down the road for months or years, until they become too large to 'hide' any more. The Premier League authorites have not been able to identify and charge offences under these rules, or to impose relevant sanctions, in any kind of reliable or timely manner. Even over smaller and relatively clearcut spending transgressions, we have seen numerous delays in the review process, followed by long wrangles and complaints about, and often appeals against the penalties initially imposed.
When a really big case comes to light, like this one against City, the League has proven utterly incapable of following it through to a successful conclusion within any reasonable timeframe.
The League's executive really has been astonishingly inept and negligent in this matter. A key concern with the FFP/PSR initiatives was to try to stop a wealthy individual or organisation from funnelling additional revenue into a club through other channels, outside of their original investment. When the major sponsor is owned by, or intimately connected with, one of a club's main shareholders, that is immediately a cause for concern. In fact, in any sensible world, it should simply be outlawed outright, because it obviously creates the opportunity to do exactly this - to channel additional funds into the club from its owner via an indirect route. Knowing that this was the situation, and having allowed the massive Etihad sponsorship deal to go ahead anyway, the League should have been monitoring the situation very closely at the time and identifying any improprieties almost immediately - not fortuitously stumbling upon the alleged malpractice many years later as a result of a German magazine article. There's 'shutting the stable-door after the horse has bolted' - and then there's this: all this portentous moral outrage over supposed financial wrongdoing that should have been caught at the time... and is now ancient history.
I'm not saying City didn't do anything wrong; and I'm not saying I hope they'll be allowed to get away with it - not at all. But the framework within which their wrongdoing has been identified and investigated, and will supposedly be punished - is just too rickety to achieve success in that process.
What could, should sanctions even look like, if the League did eventually win the case?
A lot of embittered rival fans are fantasising about titles being stripped away, about the whole of Pep Guardiola's period of triumph at the club being magicked out of existence. In fact, the charges refer primarily to the early years of Sheikh Mansour's investment in the club, and end with the 2017-2018 season (the first of Pep's six Premier League championship victories), just before the investigations were launched. Now, it is possible that similar financial improprieties have continued since then (but that is outside the scope of these proceedings); and an argument can be made that 'financial doping' in the pre-Pep era has continued to benefit the club subsequently. But the fact is that any sanctions imposed now will surely have to be restricted in reference to those years in which the offences actually took place; putative impacts in later seasons are just too remote and uncertain to be taken into consideration. Pep's successes with the club after 2018 are not at stake.
Anyway, stripping away titles seems pointless to me. Pointless, impractical, and messy - likely to cause huge additional problems for the League and the Football Association. If you start questioning the validity of the historical results of competitions, you may get all kinds of legal actions from other clubs who feel they were unfairly harmed as a consequence. The 18th-placed teams in the league may claim that they would have stayed up, if City had been excluded from the competition that year, sanctioned at the time with an automatic relegation (but what year would that have been, if such a sanction could have been handed down at the time? or should we just now imagine that City is removed from the league rankings for every 'tainted' year? and would that have any effect on any of the relegated teams??). The runners-up in the League and the FA Cup and League Cup may claim that they should now be awarded those trophies (though teams who lost to City in earlier rounds may also feel that they otherwise would have gone all the way that year!). All sorts of teams will feel hard done-by that they missed out on qualifying for European football (or missed out on a higher level of European competition than the one they actually gained entry to). But these hypotheticals become absurdly complicated: if City had not been allowed to take part in those seasons, different clubs might have been in the runners-up position or the relegation places on the basis of results against City being eliminated from the record; and all kinds of other results might have gone differently too, matches not even involving City (for example, game outcomes being potentially affected by players having picked up injuries or cards against City, or players who just got dispirited by a drubbing from City and played uncharacteristically poorly in a few games following as well....).
I feel sure the English courts would reject all such claims as too remote and conjectural to support any claim for damages. But the League and the FA would find themselves under enormous pressure to reallocate trophies and rankings, and perhaps to retrospectively pay the additional prize money associated with those achievements (and they probably wouldn't be able to afford to do so, unless they were able to extract an enormous financial penalty from City that would cover it). It would be an horrendous can of worms - that the League really should not want to open. It is something akin to proposals we occasionally hear mooted to offer reparations to descendants of the victims of slavery in the United States - how can you ever quantify such losses? and what is the point of trying to make amends so long after the event?
What ultimately would be the point of any of this?? We all remember how well City played in those years, how they entertained us with their football, how they won those trophies in style. We've all enjoyed (yes, at the time, even the fans of some of City's bitterest rivals could not resist this) the drama and romance of Sergio Aguero's fantastic last-gasp winner against QPR to secure the 2012 League title. You can't undo any of that now; you can't rewrite history. And no-one would get any real satisfaction from being awarded a league title or a cup win in retrospect, an accolade they have no recollection of celebrating in the relevant year when it happened,... an accolade they know they didn't achieve on the pitch, but only through a legal procedure.
Even at the time, City's achievements were somewhat tainted by the obscene amounts of money we knew they had backing them; and we had suspicions that they were perhaps not fully observing the supposed 'fair play' regulations the League was trying to use to restrict the dominance of the bigger-spending clubs (although, in practice, those rules have largely served only to hinder the advance of the less well-off clubs). If the charges were eventually to be proved, would it really make any difference? I just don't see how it would. Even if a team had been shown, many years later, to have benefitted from taking performance-enhancing drugs (as is now widely believed to be the case with West Germany's World Cup win in 1954), or from an obviously incorrect refereeing call on a crucial incident (and even English fans probably now mostly accept that Geoff Hurst's decisive second goal - England's third - in the 1966 World Cup Final didn't fully cross the line), we'd just have to shrug and say, "Well, they still won it. Shouldn't have - but did. Can't change that now. We might regret that, resent it, disapprove mightily - but we can't change anything after the event."
We need to start cultivating a similar sense of realism about the City scandal. For heaven's sake, it's already receding into the mists of time: most of the charges refer to events 10-17 years ago; by the time the glacial progress through the Judicial Panel procedures and then through England's civil courts has concluded, we might be looking at events a quarter of a century or more distant. (The Court of Arbitration for Sport ruled seven years ago that some of the charges were already time-barred as too remote to pursue any further.) You can't 'right wrongs' that old; it's foolhardy to even try to do so.
So, what would an 'ideal' outcome be?
If these charges could be convincingly substantiated, Sheikh Mansour and his entourage would appear to have committed a series of criminal acts. If it is not feasible (or diplomatically acceptable) to press criminal charges against them, they should at least be declared 'unfit persons' to be involved in the ownership and management of football clubs and required to give up their share in Manchester City immediately. (Ideally, they would also be banned from taking any ownership in any other football club, or any kind of sporting venture, worldwide; but we'd have to look to FIFA and other international sporting bodies to follow the English lead in order to achieve such a comprehensive ban, and I doubt if that's a realistic possibility.) That is the most appropriate and needful sanction in an affair such as this. It is the owners who committed the wrongdoing; it is the owners who should be punished. (And, given how much money they have sunk into the club over so many years, to build it up into the flagship of their national propaganda efforts, it would hurt very deeply to have that taken away from them - far more devastating than simply a fine, however swingeing.)
Retrospective penalties such as reallocation of titles seem to me like fatuous grandstanding. As I just said above, it wouldn't truly rewrite the history of the game or people's memories of it; and it would cause endless complications and recriminations amongst other clubs seeking to gain some benefit from it.
Fines, transfer bans, massive points deductions, or even automatic relegation to the Championship (or expulsion from the Premier League altogether, which might force City to go cap in hand to beg for discretionary admittance into one of the lower leagues) have also been touted as possible penalties. But it seems harsh to me to punish the club - its players, fans, and coaching staff - for offences that were the responsibility of its financial management; and to punish it today for offences that occurred many years ago. If you can point to recent offences that have definitely continued to give the team an unfair advantage going into the current season, then those sorts of penalties would be quite appropriate and necessary; but to punish the club now for improprieties that may have occurred 8 or 9 years ago at the most recent, the majority of them far longer ago than that - it's just ridiculous. I would rather see a sanction that focused just on Mansour and the club's senior management, those directly responsible for the financial shenanigans.
But none of that will happen unless the case reaches some kind of satisfactory resolution. And I can't see that that ever happening through a judicial process: if the League keeps fighting the case, the English courts will eventually exonerate City on grounds of 'insufficient evidence' (you can't definitively prove exactly what they're supposed to have done wrong) or 'inadequately framed regulations' (it's not even clear that what they did was 'wrong' under these rules) or shortcomings in 'procedural fairness' (the Judicial Commission was biased in its handling of the case, did not conduct its proceedings in a truly 'independent and impartial' manner, perhaps appeared to have 'pre-judged' some of the issues and did not reach entirely reasonable conclusions on the facts and arguments presented to it). Probably almost no-one will give any credence to that outcome. But that is inevitably what will happen,... unless, as I fantasised earlier, somebody in the City hierarchy becomes a turncoat and testifies against the conspiracy.
Or, maybe..... we could hope for an internal coup, where directors or representatives of other major stakeholders pressure Mansour and his team into stepping down 'for the good of the club'. Since Mansour's investment vehicle, Abu Dhabi United Group, has a more-than-80% share in the club, though, it's probably unlikely that the other investors, even if they could present a united front, would be able to wield much influence in this regard. Would a fan rebellion be able to bring about such a backdown by Mansour?? Well, possibly; but at the moment, most of the fanbase seems to be sticking loyally by the club, and accepting - albeit hesitantly, uncomfortably - the official position that the charges have always been without merit.
The only chance of some more satisfactory conclusion to this matter is if the League can hammer out a backroom deal where City admit to and apologise for some wrongdoing, and accept a certain package of sanctions without any further legal resistance.
That is the best - the only good - outcome the League might realistically hope to achieve. And it would, in the longer term, be the best outcome for the image of the club, I believe. It would certainly be good for the game as a whole, to achieve some closure on this long-running fiasco, and to have the League secure at least a token victory for its regime of spending regulations.
But the League doesn't have very much leverage to push for such a deal. And Mansour's minions seem determined to fight the charges to the bitter end. And that, I'm afraid, can only result in final humiliation and frustration for the League - and for all lovers of the game.




