Manchester City engaged in secret settlement talks with the Premier League prior to their guilty verdict on 115 charges of financial rule breaches, according to reports. These discussions aimed at an early-stage settlement, which could have potentially resulted in a significant fine for the club instead of risking severe sanctions such as title stripping or expulsion from the top flight.
The talks, however, collapsed as the club refused to accept any charges during the negotiations. The extent of the alleged wrongdoing, detailed in the verdict, has been described as the biggest cheating scandal in British sporting history. If the club's appeal fails, substantial punishments are expected.
According to Bloomberg, the Premier League stated that the commission found City arranged 'sham contracts (which misrepresented the true agreement between the parties) with a number of its commercial partners, as well as relying on ‘sham’ agreements with others, to artificially inflate the club’s revenues and reduce its costs’. The club is accused of misstating accounts by approximately £900 million over a nine-year period, from 2009 to 2018. During this time, City claimed commercial income of nearly £950 million, while only £119.25 million was reportedly from actual sponsors.
Deals with several sponsors were reportedly part of a 'disguised funding scheme,' where companies paid only a portion of the sponsorship fees, with the remainder funded by Abu Dhabi United Group Investment & Development Ltd (ADUG), the club's owner. The panel also found further 'sham' arrangements funded by ADUG that allowed City to record lower operating expenses and a 'sham' circular arrangement with an entity that purchased the club’s image rights. These actions led to the club filing misstated accounts and concealing its financial status from auditors and football regulators.
Despite the club's public assertions of innocence and ongoing appeal, the willingness to engage in settlement talks prior to the verdict has been a previously unreported development. The potential for a settlement would have likely caused significant uproar among rival clubs, and such an agreement would not necessarily constitute an admission of guilt.
Manager Enzo Maresca addressed the situation at a press conference, stating his full trust in the club and its organization. "I know how serious they are and they do the right things," Maresca said. "I want to speak about this when we win the appeal." He rejected the notion that previous titles were tarnished and indicated he would remain with the club even if relegated. Maresca and CEO Ferran Soriano spoke to the squad about maintaining focus amidst the ongoing process, emphasizing the importance of controlling external noise.
Maresca added that he has "no worry at all" about the team's focus, citing their current position at the top of the league and the players' general positive demeanor. The club is preparing for its next match against Liverpool at Anfield.