Manchester City are still waiting to learn their punishment after being found guilty on 114 of 115 charges for breaching Premier League financial rules, with a new twist emerging as the UK's audit regulator steps in.
Appeal Delays Punishment Until 2027
City have appealed the verdict, which delays any definitive punishment from coming into effect until 2027, unless they can prove their innocence. The club has been waiting almost a month since the announcement of the guilty verdict.
On the pitch, Enzo Maresca's men have been unaffected, winning all but one of their 10 games across all competitions while scoring goals freely. However, the squad are still waiting to learn the punishment they will face if their appeal is unsuccessful.
Points Deduction Reports
New reports this week indicate a giant points deduction, which would relegate the club to the EFL Championship, is imminent. A second deduction could come next season, keeping them in the second tier for at least an extra 12 months.
Audit Regulator Steps In
As reported by the BBC, the UK's audit regulator is now leading inquiries into accounting irregularities at Man City. In a letter to the House of Commons business select committee, the Financial Reporting Council (FRC) stated it had taken over "regulatory consideration" of the case from the Institute of Chartered Accountants in England and Wales.
The FRC said it was examining the independent commission's findings and making "preliminary enquiries" to establish whether there were grounds for a formal investigation. The FRC has greater resources and powers to impose sanctions if it finds evidence of violations.
It routinely oversees accounting standards at larger institutions, such as listed public companies, but not at football clubs. The FRC can look into the conduct of BDO, Manchester City's auditors, to determine whether the audit complied with the rules. It can also impose sanctions on individuals, namely directors or employees of the club, if they are members of professional accountancy bodies.
