Opinion:
The Man City cat is out of the bag

The PL’s investigation into Man City began in 2018 and continued until 2023, with 115 charges levelled against the Club being considered by an Independent Commission which has been deliberating for two years. Clearly, these are complex allegations relating to multiple seasons extending as far back as 2009, but it is nevertheless interesting to learn that even with the resources available to the PL, the wheels of justice grind just as slowly as they do in employment tribunal litigation.

What are the sporting implications for Man City?

Since Friday, speculation from pundits and fans as to the likely sanctions Man City may face has reached epic proportions. Many commentators have suggested that the Club’s expulsion from the PL is a possible outcome. However, until the PL announces its sanctions, the consequences for the Club are unclear.

Past examples of sanctions for financial breaches involving Nottingham Forest and Everton resulted in both clubs receiving points deductions. However, the sheer scale of the breaches found against City suggests that the 4- and 6-point deductions eventually handed out in these previous cases will provide little guidance as to the likely penalty facing the current PL leaders. It’s safe to say that many will be arguing that any penalty handed out to City should be exponentially more serious given the relative size of the alleged transgressions. One commentator has suggested that, if Everton received a 6-point deduction for one financial breach, then mathematically, 114 breaches over nine seasons should result in a 76-point deduction for every season! Whilst the fans of some rival clubs might agree, it’s unlikely to be quite that simple.

Other potential options include relegation, financial penalties, restrictions to competition and the stripping of past titles from the Club. There may also be compensation claims from other clubs who argue that they have lost out, for example on lucrative Champions League places, as a result of City’s financial wrongdoing.

What is clear is that once any sanctions are issued, Man City has 14 days to appeal to a new three-member Appeal Board, whose decision is final. The appeal process is designed to conclude within 12 weeks. It’s therefore fair to say that the world could look very different for Man City and its employees by February 2027.

An employment perspective – what about the players?

I understand that under the terms of many footballers’ contracts, a relegation will not trigger the player or the club having the right to place the player up for sale, although the terms of every contract must be examined carefully, of course. But it is not uncommon for a professional footballer’s contract to state that, if relegated, the player stays with the club and their remuneration is reduced. In that case, provided the club is in a position to pay the remuneration specified in the players’ contracts, employment continues. The players may be bitterly disappointed that they signed to play in the top flight only to find themselves in a lower division (not necessarily the Championship). However, their options in relation to a legal challenge could be limited.

That said, some reports have suggested that there may be clauses within certain players’ contracts which are triggered by relegation. Whilst these may not allow the relevant players to leave for free, they could pave the way for them to negotiate an early exit from the Club. Against this background, and although we are only a matter of days from the bombshell news landing on Friday, it has been reported that the sporting director of European powerhouse FC Barcelona has already held a one-hour meeting with the representatives of key striker Erling Haaland to lay the groundwork for a move should he become available in 2027.

And Haaland may not be the only player considering his future if the penalty handed down is disastrous for City. Sanctions relating to the historic results may, in turn, strip medals and trophies from the individual players who were involved in the respective campaigns. If Man City also finds itself having to pay compensation to other teams, the question may also arise whether individual players would need to return any specific bonuses awarded for winning titles with the Club.

While everyone from the fans to the lawyers eagerly awaits the next chapter in this story, it will be a terribly worrying time for many Man City employees. Looking after the wellbeing of staff at this time should be a top priority. As well as it being the right and proper thing to do, case law confirms that failing to offer support for employees can constitute a breach of trust and confidence, giving rise to risks of constructive unfair dismissal claims.