Man City held ‘secret settlement talks’ with the Premier League before their guilty verdict.
The club, who have been found guilty of 114 of their 115 charges and face the prospect of extreme sanctions if their appeal fails, were unable to agree terms and those talks collapsed.
According to Bloomberg, discussions over an ‘early-stage settlement’ took place between both parties and City could have been let off with a heavy fine rather than risk having their titles stripped and face expulsion from the top flight.
Those talks were conducted prior to the devastating outcome for City, which has rocked football and been described as the biggest cheating scandal in British sporting history.
City have publicly protested their innocence and are appealing the independent commission’s ruling but the fact that they were willing to engage in talks over a settlement is a fascinating revelation, even though they refused to accept any charges during discussions.
A settlement would have caused uproar among rival clubs and it would have reduced the size of the case rather than resolve it in full. In addition, a settlement would not necessarily have amounted to admission of guilt.
Khaldoon Al Mubarak, Chairman of Manchester City speaks with Ferran Soriano, CEO. The club are reported to have engaged in settlement talks, which later collapsed
Given the scale of wrongdoing presented in the guilty verdict, severe punishments will follow if City are unsuccessful in their appeal, with the club’s future under serious threat and Premier League chief executive Richard Masters declaring the case, and the ruling, as ‘the most significant in Premier League history’.
City were found to have used ‘sham’ contracts and agreements to cook their books by around £900million over an nine-year period.
From 2009 to 2018 City claimed commercial income of £949.94million when only £119.25million had come from sponsors – which was the figure which should have appeared in the accounts.
The Premier League said the panel 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’.
Deals with a number of sponsors were part of ‘a disguised funding scheme, whereby those companies were only required to pay a portion of the relevant sponsorship fees’, the statement added, saying that ‘the remainder was funded by Abu Dhabi United Group Investment & Development Ltd (ADUG), which owned the club’.
The panel also found further ‘sham’ arrangements, funded by ADUG, which allowed City to record lower operating expenses than it incurred, along with a ‘”sham” circular arrangement with Fordham, an entity that purchased the club’s players’ image rights, that was funded by ADUG’.
The result was that the club had ‘filed misstated accounts and concealed the true state of its finances from its auditors and football regulators’.
City’s reported willingness to engage in settlement talks with the Premier League before they broke down had not been previously reported and appears at odds with the club’s repeated confidence that they will overturn the decision and be found innocent.
The scandal has reached all levels of society and even dragged in prime minister Andy Burnham, who faced criticism for his ‘tone deaf’ response, speaking of his concern at the prospect of losing City’s Abu Dhabi owners.
Enzo Maresca insisted he would have still joined Man City had they been found guilty of financial breaches prior to him being offered the role
City could have potentially escaped with a heavy fine but now risk far more serious sanctions
On Friday, manager Enzo Maresca faced a press conference grilling ahead of City’s first game back since the verdict was announced – a trip to face Liverpool at Anfield on Sunday.
‘I completely trust the club,’ Maresca said. ‘I trust the people and it’s one of the reasons I joined the club. There isn’t another club in the world where I would like to be.’
Asked if he would have accepted the job had he known what would transpire in the bitter case with the Premier League, Maresca added: ‘One hundred per cent. I know the organisation from years ago.
‘I know how serious they are and they do the right things. I want to speak about this when we win the appeal.’
Maresca rejected the notion that previous titles won – including the Treble campaign for which he was Pep Guardiola’s assistant – were tarnished.
And the 46-year-old suggested that he would have no issue dropping down the divisions (should the club be punished) given his past experience.
Rayan Cherki (left) and Mateo Kovacic (right) appear in high spirits in City training
‘I won the Championship with Leicester City,’ Maresca smirked. ‘So in case we are in League One we will see. But we are thinking about something we don’t know.
‘What happens if the appeal is won? I don’t know. We’re predicting the future. I’m worried about tomorrow, two days. It’s fair from my point of view to respect the process.’
Maresca and Ferran Soriano both addressed the City squad on their return to training on Thursday afternoon, with the coach stressing the importance of remaining focused on the games ahead.
He added: ‘We completely understand the seriousness of the situation. We understand it but it’s our duty to control the noise. You cannot avoid it.
‘Viewing the environment inside the building the last two days, I’m not worried at all. It’s nice. We’re top of the league at the moment. The players have all the reason to be happy and excited.’
