Relegation from the Premier League would cost Manchester City at least £300 million, as the club awaits possible sanctions after being found guilty of 114 breaches of Premier League financial rules. The club have launched an appeal against the verdict.
Guilty verdict and appeal
The Premier League released a statement last week confirming that the club had been found guilty of the vast majority of charges brought against them in February 2023. The independent panel found that the club used ‘sham’ sponsorship deals to boost their revenue by more than £900 million between 2009 and 2018.
City have hit back at the statement, saying they have ‘irrefutable evidence’ that proves their innocence. Part of their appeal is based on the money from the sponsorship coming from the United Arab Emirates government, instead of the club’s owners.
Potential punishments
If City’s appeal is unsuccessful, they could face serious punishments, which could include massive points deductions or even expulsion from the Premier League. Fellow Premier League clubs are split over whether that should happen, with transfer embargos and fines two other possible sanctions.
If City are handed a points deduction that will see them relegated, or are expelled from the Premier League, then they face the possibility of playing Championship football next season. That would serve as a big financial blow to the club.
Financial impact of relegation
Football finance expert Kieran Maguire told The i Paper that relegation will see City lose £50 million in broadcast revenue and £225 million in Champions League revenue. It could also see matchday revenue fall by around £40 million, due to a drop in prices in things like corporate sales.
That would be a total loss of £315 million. City would also have to contend with the squad Cost Rules (SCR) in the EFL. The regulation only allows clubs to spend 85 per cent of their allowable income on player and/or manager costs.
Maguire described the situation as: “An FFP catastrophe unless there is a huge exodus.”
City’s wage bill for the 2024/25 season was around £408.4 million, significantly higher than the average Championship wage bill of £37 million.
