Manchester City could lose at least £300 million in revenue should they be relegated to the Championship, according to football finance specialist Kieran Maguire. The club have lodged an appeal after being found guilty of 114 breaches of Premier League financial rules.
The Premier League's independent panel found that City used 'sham' sponsorship deals to inflate their revenue by around £900 million and avoid breaching financial fair play rules between 2009 and 2018. City insist they have 'irrefutable evidence' of their innocence, with part of their appeal arguing that some sponsorship money came from the United Arab Emirates government — which is permitted under Premier League laws — rather than from club owners, which would breach regulations.
Appeal verdict expected by new year
The appeal could be heard within the next 12 weeks, meaning a final verdict could arrive by the new year. If the appeal fails, City could face severe consequences, including hefty points deductions or even expulsion from the Premier League. Fellow Premier League clubs are reportedly divided over whether such measures should be imposed, with transfer embargoes and financial penalties also among the possible sanctions being considered.
Should City receive a points deduction resulting in relegation, or face expulsion from the Premier League altogether, they would be competing in Championship football next season — a prospect that would represent an enormous financial setback.
Financial impact of relegation
Maguire told The i Paper that dropping down a division would see City forfeit £50 million in broadcasting revenue and £225 million in Champions League revenue. Matchday income could also decline by approximately £40 million, owing to reduced prices across areas such as corporate hospitality.
That would represent a combined shortfall of £315 million. Yet that is not the only obstacle City would face, with the Squad Cost Rules (SCR) in the EFL also coming into play. The regulation permits clubs to allocate no more than 85 per cent of their allowable income towards player and/or manager costs.
Maguire characterised the predicament as: "An FFP catastrophe unless there is a huge exodus."
City's wage bill for the 2024/25 season stood at around £408.4 million, a figure that dwarfs the average Championship wage bill of £37 million. For Enzo Maresca and his team, concentration will be on continuing their 100 per cent start to the new season. City take on Liverpool at Anfield on Sunday (4.30pm) as the Premier League returns after the international break.
