Manchester City could find it harder to finance transfers after being found guilty of breaching the Premier League's financial rules, with reputational damage already taking hold.
An independent commission found City guilty in September of breaking the league's financial rules over a nine-year period. The commission upheld 114 of the 115 charges against the club, finding that "sham" contracts were used to disguise funding of more than £830 million.
City have consistently denied any wrongdoing and have appealed against the verdict. It emerged on Friday that the appeal will be heard in December, with a decision expected in the New Year.
Banks reportedly pulling back
Despite the ongoing process, the club is already feeling some negative effects that could influence its plans for upcoming transfer windows. City spent around £450 million on transfers in the summer, including moves for Elliot Anderson and Enzo Fernandez.
However, future spending could be restricted by banks' reluctance to help finance deals. Bloomberg reports that banks are "starting to shy away" from transactions involving City while the outcome of their case is pending.
According to the report, banks have been advancing money to clubs selling players to City but are now hesitant to do so because of reputational damage and potential credit risk.
Potential sanctions and existing impact
City could face relegation from the Premier League, a significant points deduction, a fine, or a transfer ban as a result of the verdict. The Independent Football Regulator could also strip the club from its owners, the Abu Dhabi United Group.
Bloomberg reports that City have already experienced the cold shoulder from lenders after German bank Oldenburgische Landesbank AG withdrew from a deal to help finance the £34 million signing of Allan from Palmeiras in the summer. Had the deal gone ahead, Palmeiras would have received an up-front payment from the bank secured against future transfer fees.
This process, known as transfer receivables, benefits both clubs and banks but could become off limits to City depending on the appeal's outcome.
Club's response
City chief executive Ferran Soriano is confident the club will be cleared. In a video message to staff in early October, he said: "The whole Premier League case against us is based on a single false accusation - that the owners' personal money was somehow and secretly put into the club via some sponsors from Abu Dhabi. This is just not true."
He added: "Irrefutable evidence has been provided to the Premier League commission that shows that it could not happen and that it did not happen. This includes bank statements, money transfers, witnesses and everything necessary to categorically demonstrate that the money did not come from the owner. Every other false charge that has been thrown at us - and aggressively marketed and promoted - comes from the simple, central, and completely false accusation."
