The Flawed Case Against Manchester City:

By: Ted Fred Franky, Refuting misinformation, August 13, 2024 1 month ago

A Deep Dive into Der Spiegel’s Misguided Allegations

On April 7th, 2022, Der Spiegel published an article aimed at substantiating the claims against Manchester City, drawing on a collection of redacted emails and scanned documents as their primary evidence. However, after closely examining the materials provided, it’s evident that the journalists behind the article have severely misunderstood the financial and commercial realities at play. Far from incriminating the club, the evidence seems to underscore Manchester City’s stable and well-managed operations.

In the following series of articles, I will systematically debunk the five main allegations made against Manchester City. Ironically, the so-called “evidence” presented by Der Spiegel actually serves to vindicate the club, rather than implicate it.

Manchester City MCFC Scarf

The Five Allegations Against Manchester City

City’s sponsorship deals with Etisalat and Etihad Airlines were overvalued and paid for by ADUG ie owner investment.
Both Yaya Toure and Roberto Mancini were paid additional money outside their declared contracts via additional contracts.
As a result of these combined efforts(1 and 2 above), City would have breached UEFA Financial Fair Play (FFP) losses of €90m in 3 consecutive seasons ending 2016-2018.
Also as a result of these combined efforts, City would have breached Premier League Profitability and Sustainability Rules (PSR) losses of £105m in 3 consecutive seasons ending 2016-2018.
City have not cooperated with the investigation.

Allegation 1: City’s Sponsorship Deals – INVALID

The first allegation claims that Manchester City’s sponsorship deals with Etisalat and Etihad Airlines were overvalued and effectively disguised as owner investment by ADUG. However, the documents provided by Der Spiegel reveal a more complex financial arrangement than what is simplistically alleged.

City appears to be cash-rich at certain times due to significant payouts from UEFA and the Premier League, which are temporarily forwarded to ADUG. This cash is then utilized for short-term lending or other investments before being returned to City when needed to cover expenses. This kind of financial arrangement is far from unusual and is likely similar to practices employed by other clubs, such as the Glazers at Manchester United.

Allegation 2: Payments to Toure and Mancini – INVALID

The second allegation asserts that Yaya Toure and Roberto Mancini were paid additional sums outside their declared contracts via additional agreements. However, a closer examination of these contracts reveals this claim to be unfounded.

The contract concerning Yaya Toure pertains to a third-party arrangement designed to assist ADUG in maximizing the exploitation of Toure’s image rights, a common practice in football. The contract related to Mancini involves a legal tax arrangement intended to prevent him from being taxed in both the UK and Italy—a scenario both governments have bilateral agreements to avoid. These contracts do not constitute hidden payments but rather are legitimate, documented business arrangements.

All of Mancini’s pay it outside the PSR windows, and only part of alleged Toure payments would fall into the PSR allegation.

Allegation 3: Breaches of UEFA FFP – INVALID

The third allegation centers on the idea that Manchester City’s financial maneuvers would have caused the club to breach UEFA’s Financial Fair Play rules by exceeding permissible losses of €90 million over three consecutive seasons. However, this allegation fails to hold water because the Premier League, as a third party, has no jurisdiction to enforce contracts between City and UEFA. This claim is fundamentally flawed in its legal reasoning.

Allegation 4: Breaches of Premier League PSR – INVALID

The fourth allegation suggests that these same financial maneuvers would have led City to breach the Premier League’s Profitability and Sustainability Rules, which limit acceptable losses to £105 million over three consecutive seasons. However, even under the hypothetical scenario where Etisalat and Etihad’s sponsorship deals are valued at zero, and the allegations regarding Toure and Mancini are taken at face value, the numbers simply do not add up. City might breach the PSR in one of the three years, but certainly not in all three, as the accusers claim.

Further Reading: Manchester City Allegation 4 Analysis

Allegation 5: Non-Cooperation with the Investigation – WHO CARES?

Finally, the fifth allegation accuses Manchester City of not cooperating with the investigation. But when viewed in the context of the weak and poorly substantiated case presented by <em>Der Spiegel</em>, this accusation becomes almost laughable. Given the flawed nature of the allegations and the clear agenda behind them, it’s entirely reasonable that City might be reluctant to cooperate with what appears to be a vindictive attack aimed at tarnishing the club’s reputation. Furthermore, it’s unclear what specific aspects of the investigation City is accused of not cooperating with, further undermining the validity of this claim.

Conclusion: A Vindication of Manchester City

In summary, the allegations brought forward by Der Spiegel are not only weak but are also based on a fundamental misunderstanding of the financial mechanisms at play. Instead of proving wrongdoing, the evidence serves to highlight Manchester City’s strategic financial management and adherence to the rules. This case, which seems driven more by a desire for reputational damage than by facts, ultimately fails to hold up under scrutiny.

As the dust settles, it becomes clear that Manchester City has not only operated within the bounds of financial fair play but has also demonstrated a level of financial acumen that should be commended rather than condemned.

Man City Nero Scarf - Sky/Navy - One Size

Man City Stuff