‘Shamchester City’ – Alleged Breaches and the Question of Punishment

Premier League giants, Manchester City, have been accused of failing to comply with the League’s Profitability and Sustainability Rules (PSR).

The Premier League launched an investigation into Manchester City’s finances in December 2018, with charges announced and referred to an independent commission for review at the beginning of February 2023. At the end of September 2026, the commission published its verdict and found the club guilty of all substantive financial charges and three of the four alleged cooperation charges. 

The independent panel claims that City had disguised over £830 million in illicit funding through “sham” rights deals and “fudged” numbers in employee contracts. It’s claimed that without the issuance of dodgy documents, the club would have failed the profit and sustainability rules for all nine seasons between the 2009-10 and 2017-18 campaigns. 

On 2 October 2026, City confirmed that an appeal was launched against the findings. The club stated that the commission’s rulings contained “clear material errors of law, principle, and fact.” The appeal window will take up to twelve weeks, meaning the hearing will be concluded by 24 December 2026. 

Santa might have no option but to place City on the naughty list this year.  

Adam Turnbull, a Manchester City fan studying at Heriot-Watt University, feels somewhat optimistic: “I think it’s hard to jump to assumptions as the findings aren’t fully confirmed but, if City are genuinely guilty on the charges, it’s only fair they are punished harshly.”

Looking at the accusations through an English lens, Everton faced a somewhat similar situation. They were judged to have breached PSR by £19.5 million in the 2021-22 season and had a total of eight points deducted the following season. On top of a point deduction, the Toffees were ordered to pay Burnley, the highest-placed of that season’s relegated sides, with over £35 million in compensation (a decision which Everton are currently appealing).

Manchester United faithful Jonathan Skatoff opined, “Using the precedent of Everton, City should be forced to pay damages at least to clubs such as Liverpool, United and Chelsea, who have all missed out on titles and hence revenues due to the sham they ran.”

In addition to the alleged violations, Tax Policy Associates claims that the evidence suggests City owes £12 million in unpaid UK tax, which could lead to a criminal investigation.

Over a decade ago, on 31 October 2012, Rangers F.C. entered administration and consequently liquidation. This was due to the club owing substantial sums to HM Revenue and Customs. The club was then bought, gained a new Scottish Football Association membership, and re-entered the Scottish league system in the fourth tier in time for the 2012-13 season. 

This precedent could lay the foundations for possible punishment despite the different nature of charges against City.

The BBC reports that at least four top-flight clubs also feel that a ‘one-off’ points deduction resulting in relegation to the Championship would be insufficient punishment.

“I think relegation to League 2 should be a formality; relegation to the Championship would just feel like a slap on the wrist,” Skatoff added, suggesting the club would likely gain promotion the first time of asking.

Clubs such as Everton, Nottingham Forest, and Leicester City have been handed point deductions for violating PSR by frankly meagre margins compared with the assumed scale of City’s breaches.

The announcement of the breaches has opened a can of worms, with many fans and clubs left with a sour taste given the vast success of City in recent memory. We will have to wait and see whether or not the Blue Moon will continue to shine, or fall from the sky.  

Photo Credit: Adam Turnbull