The Football Association (FA) has stated that the ruling against Manchester City has "significant implications for the integrity of football". The FA stated that it is carefully considering the ruling and its implications, and will take action where appropriate.
It was confirmed on Tuesday that City were found guilty on all counts of breaches of the Premier League's financial rules between the 2009/10 and 2017/18 seasons. City have denied the charges, with a deadline for appeal set for Friday. The FA stated that, as the proceedings between the Premier League and Manchester City are still ongoing, it does not intend to comment further at this stage, but will continue to monitor the developments.
A source close to BBC Sport said that City are expected to argue in their appeal that key sponsorship deals were funded by the Abu Dhabi authorities, not the club's owners. Among the findings of the independent panel is that City had entered into "fictitious contracts" with a number of commercial partners as part of a scheme to disguise funding of more than £830 million. The Premier League has stated that City had "systematically breached the rules of the Premier League over the past decade".
The independent panel found that City had "used funds" to "mask the true extent of certain liabilities" of the club. The findings have prompted the Treasury Committee to question whether the government department has requested redacted documents contained in the panel's report. Dame Meg Hillier, chair of the cross-party group, stated that she would "welcome the assurance from HM Revenue and Customs that it is aware of the importance of these issues and the public interest in this case".
The report by Tax Watch states that City did not pay £12 million in unpaid taxes due to a "fictitious" contract with former manager Roberto Mancini. According to the report, City faces a penalty that would raise its liabilities to £24 million. City will argue in its appeal that the key sponsorship deals were funded by the Abu Dhabi authorities, not the club's owners. The owners, Abu Dhabi United Group (ADUG) – a private investment company owned by the UAE's Deputy Prime Minister and Deputy Prime Minister, Sheikh Mansour – are said to have topped up the value of commercial contracts in a "hidden funding scheme" of £830.69 million. It is claimed that this allowed the club to appear compliant with the financial rules of the Premier League and UEFA. The rules of the Premier League allow state bodies to sponsor clubs.
The club's main sponsor, Etihad Airways, stated that it is considering legal action against the Premier League, claiming that the publication of the panel's findings had "detrimental implications... although the airline was not named in the published redacted findings". The UAE's state-owned airline stated that it "strongly rejects any finding, conclusion or implication that the company was involved in inappropriate commercial arrangements". Etihad is owned by the L'Imad sovereign fund, which is chaired by the Crown Prince of Abu Dhabi, the son of the UAE's President.
