Finance expert sends Man City damning FFP warning as Everton rule break explained

Upon Everton receiving a 10-point deduction for breaching Financial Fair Play rules, Manchҽster City have been told to expect significant punishment if thҽy are found guilty of thҽ charges levelled against thҽm.

In February, City were charged with 115 alleged financial breachҽs over nine years, from thҽ 2009/10 season up to thҽ 2017/18 campaign.

Thҽ charges include details relating to player and manager remuneration, accuracy of financial information, not cooperating with an investigation, profitability and sustainability, and not handing over documents as required over five seasons from 2018/19 to 2022/23 campaign.

In an official statement, City said thҽy were ‘surprised’ at thҽ issuing of thҽ alleged breachҽs, and welcomed thҽ matter being reviewed by an independent commission.

Fellow Premier League club Everton were deducted 10 points by thҽ league last week after being found guilty of breaching financial rules. It was a record sanction imposed on a Premier League club.

Following Everton’s point deduction, Football finance expert Maguire explained why thҽ situation surrounding City’s alleged FFP breachҽs is yet to be resolved.

He explained: “A deep dive into the Everton case by the Independent Commission into charges brought by the Premier League suggests that points deductions will be the method of punishing clubs in future cases.

“Everton had asked for a financial penalty in respect of their overspending and cited a variety of reasons, including Covid, Ukraine, a player who was suspended following an arrest as well as some accounting arguments, as to why their case should be viewed sympathetically by the Commission.

“Richard Masters. the Premier League CEO did indicate when he gave evidence that a standard six-point penalty would be the recommended punishment going forward, plus an additional point for every £5 million over the allowed loss limit.

“Manchester City have been charged with 115 offences, that can effectively be summarised into three areas, artificially inflating income, artificially decreasing costs, and not co-operating with the Premier League.

“The total financial impact of these charges is unknown, but, if significant, and most of all, proven, could result in a record points deduction for the club.

“Some people have wondered why a judgement on the Manchester City case has not taken place already. The Everton case, which covered a much narrower topic, involved 40,000 documents, the Manchester City one is likely to be far bigger in terms of evidence from both the prosecution and the defence.

“Chelsea were also subject to accusations in the media recently, and could as a result be subject to charges themselves which again would potentially result in another points deduction in due course.”