Man City Officially Appeal Guilty Verdict in Premier League Financial Case

Manchester City have lodged their appeal against the guilty verdict in the Premier League's financial case, the club confirmed on Friday.

In a short statement, City said the independent commission's ruling contained "clear material errors, of law, principle and fact and is unsafe." The club said it filed "a comprehensive body of irrefutable evidence [that] exists in support of all of its positions" on Thursday evening, and that it still insists it is innocent.

The commission found City guilty on Tuesday of all charges tied to breaking the league's financial rules between the 2009-10 and 2017-18 seasons. Among its findings was that the club arranged "sham contracts" with commercial partners to hide secret funding of more than £830m. The Premier League says City "systematically broke Premier League Rules for nearly a decade."

Earlier on Friday, the English Football Association (FA) said the verdict has "significant implications for the integrity of the game." 

Its statement said: "We are carefully considering the decision and its implications and will take action where appropriate. As proceedings between the Premier League and Manchester City Football Club remain ongoing, we do not intend to comment further at this stage. We will, however, continue to monitor developments closely." The FA has wide powers and could start its own investigation, which could bring more sanctions.

According to reports, the appeal will be heard in private by a new three-person independent panel, with each member having a background in law. League rules say an appeal hearing should wrap up within 12 weeks, and a decision should follow within 30 days after that. Twelve weeks from Thursday would be December 24. That deadline can be set aside if needed, so it is not clear how long the process will take. The rule was only added to the rule book this summer.

Past cases suggest any punishment will only come after the appeal is decided, though that is not guaranteed. That could also open the door to a second appeal against any sanctions.

According to BBC report, City are expected to argue that key sponsorship deals were paid for by the Abu Dhabi government and not by the club's owners. The Premier League says the owners, Abu Dhabi United Group (ADUG), topped up commercial deals as part of a "disguised funding scheme" worth £830.69m. ADUG is a private company owned by Sheikh Mansour, the UAE vice-president and deputy prime minister. League rules allow state-owned bodies to sponsor clubs.

The commission found City "utilised devices" to "disguise the true extent of certain club liabilities." That has led the Treasury Committee, a group of UK MPs that oversees the country's tax authority, HM Revenue and Customs (HMRC), to ask if HMRC has requested the redacted documents in the report. Committee chair Dame Meg Hillier said she would "welcome reassurance from HMRC that you are seized of the importance of these issues and the public interest in this case."

Her letter follows a report from Tax Policy Associates, which claims City failed to pay up to £12m in tax because of a "sham" contract with former manager Roberto Mancini. It says a penalty could push the bill to £24m.

Etihad Airways, City's main sponsor, is thinking about legal action against the Premier League. It says publishing the findings had "damaging implications… despite the airline not being named in the redacted published findings." 

The state-owned airline "categorically rejects any finding, conclusion or implication that suggests the airline has ever been involved in improper commercial arrangements." Etihad is owned by the sovereign wealth fund L'Imad, which is chaired by the Crown Prince of Abu Dhabi.