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Manchester Evening News
Manchester Evening News
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Dave Powell & Kyle Newbould & Simon Bajkowski

Man City transfer stance, squad atmosphere and what's next amid Premier League charges

Since Monday's shocking news that the Premier League had charged Manchester City with over 100 breaches of their financial rules, speculation and uncertainty has engulfed the club.

City contest the charges that allege they breached financial regulations over several seasons, following a long-term investigation by the league's hierarchy, but the assignment to an independent review panel will likely stretch the process out even longer.

Among all the drama, there is a lack of clarity as to the exact time-frame, what could happen to City if they are found guilty of some or all of the charges, and what this means for the future of City's spending, Pep Guardiola's future of the club as a whole.

ALSO READ: City fans know the best response to Premier League allegations

In an attempt to provide some clarity, chief City writer Simon Bajkowski was joined by the business of football writer Dave Powell on a live Q&A to answer any questions. And below is a transcript with information on the process, City's future, and why this has surfaced.

Have any of the other clubs been so heavily scrutinised and if not, why not?

SB: No, they haven't, because there have not been enough suspicion about other clubs based on available information. The Premier League thought that the allegations made about Manchester City by Football Leaks through Der Spiegel were worth investigating and, after nearly five years of their own investigations, have come up with the charges against City. There hasn't been anything to suggest other clubs should be looked into to this degree.

How much of this issue is political rather than about football?

DP: This is an issue that will run for a very long time, likely into years given the legal battle that could ensue. With regards to whether it is political or about football, I spoke with Professor Simon Chadwick, Professor of Sport and Geopolitical Economy at the SKEMA Business School, yesterday who said the following: "Boris Johnson engaged in populist politics to appeal to the 'red wall' seats and football-loving voters in the wake of the European Super League. His knee-jerk reaction to the ESL meant that he waved through the Fan-Led Review, something that was supposed to be released the day after the Premier League brought the charges against City this week. That call for greater governance, I'm not sure he fully appreciated the ramifications of it.

"He caused a whole heap of trouble and I'm not sure the Government knows how to get out of the corner it is in. If the Government starts questioning the likes if Saudi Arabia and Abu Dhabi then there is a chance that they put their investment into Britain on hold. There has been no scrutiny for decades and now there is all this pressure on the Premier League to be more robust with issues of Financial Fair Play. The Government and the Premier League know that they have little room for manoeuvre.

"The Government are letting the Premier League carry the can more than some people might realise. This is much less about Manchester City and much more about the relationship between the Premier League and the British Government."

SB: Dave has taken the politics bit and it is hard to take the politics out of the announcement, although if City have broken Premier League rules - particularly the most serious breaches - then they cannot hide behind the politics of the call and must face whatever punishment they are given.

Will this affect the club's transfer strategy?

SB: As far as transfers go, we will have to wait and see. City do not see their position as having fundamentally changed and so will look to carry on as normal with their transfer market. It's worth pointing out they signed Nathan Ake and Ferran Torres in 2020 in the short time the UEFA punishment was hanging over their heads. But it no doubt makes their transfer window harder since they have to do enough to convince potential signings to join. That could come in the form of reassurance, extra money, or exit clauses, but will be more work than they would have been expecting to do before Monday's news.

It's easy to think that such a cloud could influence player decisions, and it definitely could. At the same time, the current squad were reassured after the UEFA verdict and that faith paid off at CAS so any of those players who speak to the summer targets will be giving the message to trust what the club are saying. The same goes for Guardiola, who has said he would leave the next day if the club have lied to him, but that hasn't happened as far as he is concerned.

How is the atmosphere among the squad and will this news facilitate the release of players such as Gundogan and Bernardo?

SB: It's obviously unwelcome news across the club but after the bombshell of Monday I'm not sure how long you can sit around thinking about it. Every player has enough to worry about trying to find their form. It could influence Gundogan in the way it could influence summer targets, yet as discussed below there are ways to deal with that so it doesn't at this moment look too big an issue.

Why didn't City co-operate with UEFA last time if they held irrefutable evidence?

SB: City didn't co-operate with UEFA because they said the investigation was flawed. They have been charged by the Premier League for not co-operating fully, although the club claimed 'vast engagement'. The commission will have to decide whether City's co-operation with the Premier League was enough or not

What I would add is that the idea that 'if you're innocent, just publish all your documents' is a bit naive in the professional world as it simply isn't how businesses operate.

If City only receive a fine, would that set the standard of punishment for cheating?

SB: It obviously depends on what they are fined for. If any of the financial charges are proven you would expect punishment greater than a fine, but if e.g. they are charged with not co-operating fully with an investigation that has not proven their financial allegations I think a fine would be reasonable.

Is this not an issue with FFP?

SB: Yep, FFP is an issue to come out of this. That said, just like with UEFA, City signed up to these competition rules so they have nowhere to hide if they have broken them. We can debate the merits of FFP but that would not excuse the alleged inflation of revenues and hiding of costs.

How relevant is it that Premier League rules state their members must comply with UEFA rules in their entirety and is EPL bound by the same rules?

SB: It's a charge because all Premier League clubs agree to give accurate information to UEFA as well. But the main charges are the first set of mispresenting their position to the Premier League. I would imagine, although couldn't say for certain, that the two sets of charges will be related so if City are found to have breached Premier League rules on spending the same will go for UEFA because they will have presented the same books (and vice versa).

Will City's legal fees be on the club's balance sheet, thus affecting transfer/wage budget? And if City win, will the Premier League reimburse those costs?

DP: The legal fees would be accounted for as operational expenses on the club's balance sheet. I don't think it would have any hugely significant impact on transfer spend or payroll. There would be the potential of some legal costs being reimbursed should City win any legal case, that would be at the discretion of the court, though.

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