PL charge City for alleged breaches of financial rules

[Prestwich_Blue]

If that 6 point deduction offer is true I’m amazed City didn’t take it. If we have say a 30% chance of relegation, given that even the most slam dunk of cases has only around a 70% chance of winning, why take the chance?

LOL. I hope that's an ironic reply. The prospect of relegation was never a serious option, more a piece of media sensationalism.

To be expelled from the PL, or suffer something like a 70 point deduction, we'd have to have committed a very serious, wide ranging and deliberate deception against the PL, UEFA, our auditor and our commercial partners. Quite simply, we haven't done that.

If we had I'd be very shocked and would have little sympathy for those who orchestrated that.

As I said, the very worst case scenario is that we'd be in a similar position to Everton, with the the IC finding that the bulk of the Etihad sponsorship was falsely included in our revenues. In that case we could be found to have exceeded the PL PSR maximum allowable loss by a similar sum when the figures for the impacted years were re-evaluated. I seriously doubt that's going to be the case though.

 

[Churchlawtonblue]

If that 6 point deduction offer is true I’m amazed City didn’t take it. If we have say a 30% chance of relegation, given that even the most slam dunk of cases has only around a 70% chance of winning, why take the chance?

If that offer is true, don't you think it smacks of desperation and weakness by the PL given its so early in the process. And if City turned it down don't you think they firmly believe they have a very very strong case.

 

[Pelegrinni]

Let's remember that it's really only 3 substantive issues, not 115.

They'd be looking at a points deduction only if they felt our revenue was overstated, or expenses understated, to a point that we'd have failed PSR had they not been. That scenario would put us in the same sort of position as Everton.

The Mancini contract isn't enough to do that, plus there were no financial rules in place at the time as they were only introduced in 2013/14. I very much doubt Fordham would be enough to push us over as we're only talking about probably £13m a season.

So it's the Etihad contract, which we can only assume they're taking the same line as UEFA on, in that the majority wasn't paid by Etihad. But having looked at the figures, even if we're talking about Etihad etc being overstated by £60m a season, I'm dubious as to how we'd have failed the PL's profit and sustainability rules, which allow an aggregate loss of £105m over a 3-year period.

We reported an aggregate net profit of £7m over the first three years of the PL's rules. Adding back a minimum of £75m in allowable expenditure over those 3 years gives an adjusted net profit of over £80m meaning we'd have to have overstated our profit by £200m over those 3 years to have fallen foul of PSR enough to warrant a 6-point penalty.

Therefore you could potentially see the logic in the PL's offer of a 6-point deduction if they think we've significantly overstated sponsorship revenue. But we haven't done that, as CAS proved.

I thought the Etihad deal was £400m for 10 years (when it was signed) equating to £40m per year. Compared to the £60m you stated in your post above.

 

[BamberBridgeBlue]

If that 6 point deduction offer is true I’m amazed City didn’t take it. If we have say a 30% chance of relegation, given that even the most slam dunk of cases has only around a 70% chance of winning, why take the chance?

You are joking? If we admit anything it’ll just keep happening. We already paid a fine to UEFA on that understanding. You surely can’t trust them when they say 6 points deduction would be the end of it? Don’t forget these are breaches of rules placed there to either stop us or for us to breach. I’d tell them to shove it right up their jacksi.

 

[Kippax77]

LOL. I hope that's an ironic reply. The prospect of relegation was never a serious option, more a piece of media sensationalism.

To be expelled from the PL, or suffer something like a 70 point deduction, we'd have to have committed a very serious, wide ranging and deliberate deception against the PL, UEFA, our auditor and our commercial partners. Quite simply, we haven't done that.

If we had them I'd be very shocked and would have little sympathy for those who orchestrated that.

As I said, the very worst case scenario is that we'd be in a similar position to Everton, with the the IC finding that the bulk of the Etihad sponsorship was falsely included in our revenues.In that case we could be found to have exceeded the PL PSR maximum allowable loss by a similar sum when the figures for the impacted years were re-evaluated. I seriously doubt that's going to be the case though.

I find my chest puffing out more and more with each of your posts PB.
Keep them coming, they're positively therapeutic compared with some of the fanny wipes on here trying to scaremonger with crass media snippets

 

[abu13]

There was an article this morning stating that the Rags may invest £1.5 billion in a new stadium to replace the shithole, given they already have the best part of £1 billion of debt then this is a huge figure. Now I understand the argument that if all goes to their plan the increased crowds will help fund the project. But how is that any different to owner investment, our owners pumped money into the club with a medium term plan to grow the club, increase revenues and build the brand.

In essence how is it any different, both clubs wanting to invest for the future prosperity of the club but one is ok and the other leads to the shit storm we have had to endure.

 

[Protein Junkie]

And so the Red Cartel hawks continue to circle over the plump bloated carcass that was once Manchester City.
The behemoth is not yet dead but lemmings everywhere suggest a different method of kill.

And all of this is when they DO NOT care about us.

Can you imagine how worse the witch hunt would be if they did care about us?

 

[gordondaviesmoustache]

It’s rare for any litigation to not feature an offer to settle by one of the parties at sone pint, even if it’s derisory and not capable of acceptance. No reason to think there couldn’t have been case here.

 

[Cobwebcat]

Perhaps you are innocent

Lots of innocent people are found guilty.

 

[bluemanchester]

Fair and decent podcast here

Probably the first podcast I have listened to fully. The problem I find with journalists discussing the breaches is that they start at the point, what happens if City are guilty when the real starting point is when these rules were introduced, by who and why. Most of it taken up by painting a bad picture of City and a fleeting mention of if the PL are wrong.
In short it is clickbait.