Fears are rising within English and European football about an unprecedented scenario that could put Manchester City in the Champions League next season, even if they are relegated from the English Premier League due to the expected sanctions against the backdrop of the financial violations case.
According to the British BBC network, prominent officials in English football are concerned about the possibility of City participating in the European competition, if the team succeeds in winning the Champions League this season, as winning the title gives its owner the right to qualify for the next edition as the title holder, regardless of his position in the local football pyramid.
The BBC explained that the regulations do not include an automatic mechanism that prevents a club from participating in a European competition for which it qualifies on sporting grounds, even if it is later subjected to severe local punishment. This comes at a time when City is facing the repercussions of the ruling issued by the independent committee that looked into the English Premier League’s accusations of financial irregularities over the years.
The independent committee concluded that Manchester City was guilty of all charges related to inflating sponsorship revenues by about 830 million pounds sterling through contracts described as sham, in addition to concealing other expenses worth about 90 million pounds sterling. According to the results of the investigation, had it not been for these violations, the club would have violated the rules of profitability and sustainability in all nine seasons between 2009 and 2018.
Manchester City denies committing any wrongdoing, describing what happened as a “conspiracy by the English Premier League,” and last week filed an appeal against the ruling issued against it.
One of the main knots is the issue of European licensing, as every club needs to obtain a license in order to participate in UEFA competitions. Licenses are issued by the English Football Association, with the issuance process delegated to the English Premier League.
According to the sources that the BBC spoke to, the licensing conditions are based on the club’s current situation and do not take into account the penalties or historical violations that it may have committed. If the club meets the minimum required standards, according to this mechanism, there is no clear authority to refuse to grant it a license due to historical financial violations.
The main reasons that could prevent obtaining a license are the presence of late financial dues to other clubs or players, or unpaid tax obligations, while the criteria also include issues such as a conviction for match-fixing during the previous ten years, or the existence of a conflict related to the ownership of multiple clubs, which are matters that do not apply to City’s current case.
The BBC quoted a source as saying that licenses are granted based on current financial performance, and therefore the grounds on which City can refuse to grant a license are “unclear.”
If the ruling issued against the club is upheld after appeal, City may face harsh penalties, including a large number of points deduction, a huge financial fine, and a ban on contracts. The final penalty determination session, which will decide the nature of the penalty that will be imposed on the club, is still without a specific date.
Deducting points may remove City from the Champions League qualifying positions through the league standings, but that will not close the door to its European participation completely, as the club can reach one of the continental competitions through the cup tournaments. The possibility of being relegated directly from the English Premier League is still on the table among the possible sanctions.
Concerns are not limited to the scenario of winning the Champions League, as City winning the FA Cup or League Cup could give them a place in the Europa League or European Conference League, respectively.
UEFA faces an additional dilemma in this case, as it cannot take action against City at the present time, while disciplinary proceedings in England are still ongoing. However, the BBC reported that the possible scenarios are likely to be the subject of discussion within the European Union’s administration and the Financial Supervision Authority for its clubs.
The sensitivity of the situation increases because the English case also includes five charges related to violating European Union rules regarding profitability and sustainability, which may prompt UEFA to open a new disciplinary case with the aim of finding a legal basis to prevent City from participating in upcoming European competitions.
However, UEFA’s ability to exclude the club is not guaranteed, especially since the violations date back to a previous historical period. The case recalls City's previous experience with the European Union, when the club succeeded in 2020 in canceling the penalty of being banned from participating in European competitions for two years.
UEFA imposed the penalty after concluding that City had committed “serious violations” of the rules of financial fair play between 2012 and 2016, the same period covered by the English investigation. But the Court of Arbitration for Sport overturned the penalty after concluding that the violations had become “time-limited” under European Union regulations.
If Manchester City fails in its appeal against the English authorities, and at the same time manages to win the Champions League, UEFA will find itself faced with the need to find a disciplinary measure that prevents the club from defending its title in the following season.
But the 2020 experience makes the issue more complex, as European football officials fear that City will once again be able to appeal any punishment before the Court of Arbitration for Sport, especially if it is based on historical violations that exceed the time periods stipulated in European Union regulations.
Thus, the Manchester City case may turn from a dispute over local sanctions into a broader test of the ability of the English and European football system to deal with a club that may be subject to severe punishment, but at the same time has, according to sporting standards, the right to participate in the largest continental competitions.
