Manchester City will learn any potential punishments next year if their appeal against breaches of financial regulations fails, with sanctions unlikely to be served this season and impact a title fight that might include Liverpool.
In September, an independent commission determined City were guilty on 114 of the 115 charges brought against the club in 2023, following an inquiry into the club's practices. They were found guilty of violating financial regulations between 2009 and 2018 and hindering the Premier League's probe until 2023.
Commission findings and appeal
The commission concluded that City employed "sham" sponsorship arrangements to conceal over £830million of owner Sheikh Mansour's personal funds as legitimate income and hid nearly £17m in undisclosed payments to personnel and players. City swiftly and forcefully rejected these conclusions and branded them "unsafe."
On October 1, they submitted an appeal. It is now being reported that the multi-day hearing will occur in mid-December and any penalties will be handed down in 2027. But the sanctions being issued does not mean they will be served immediately, so Andoni Iraola's Reds might not benefit from their impact this term.
Premier League standings
At this stage, City sit third in the Premier League on 21 points. Liverpool are three points behind them in fourth. Arsenal, the defending champions, have started the campaign well and sit top on 27 points. Surprise package Brighton are in second on 22 points.
It is still early days and only 10 matches have been played, but it already seems as though City will be there or thereabouts in this year's title challenge. The Reds have suffered a few hiccups so far this campaign, but they too harbour hopes of competing for the crown.
Potential sanctions and timeline
Liverpool would therefore have been hoping that any punishment City face - which could range from points deductions to outright expulsion from the top flight - would be served this season. This is now seemingly not likely to be the case.
The Financial Times suggests that the appeal hearing due to proceed next month could span several days. The outcomes of that appeal and whether City's guilty determination will stand are expected to be delivered in the New Year. A ruling on penalties will subsequently be reached should the appeal prove fruitless.
The Premier League rulebook grants the independent commission the authority to impose whatever punishment it deems appropriate. Expulsion can only be put forward as a recommendation by the commission and a vote is then put to member clubs. No fewer than 15 clubs would need to back the proposal for it to be carried.
At present, it remains unclear precisely when those penalties, should they be handed down following an unsuccessful appeal, would take effect, whether during the current Premier League campaign or the one that follows.
While the report suggests the outcome of the appeal and any potential punishment may be resolved in 2027, the final legal conclusion might not materialise until the following year or even 2029.
City are expected to contend at next month's hearing that the disputed sponsorship funding originated from the Abu Dhabi government as a sovereign body rather than from a private company. Upon lodging their appeal, City maintained the commission's verdict contained "clear material errors of law, principle and fact." City also retain the right to lodge a separate appeal against whatever sanctions they may ultimately face.
