PL charge City for alleged breaches of financial rules

[BLUE THUNDER]

I was just thinking about this. We've dropped about 15 points over Autumn already and if we don't qualify for the CL latter stages that could be $50m. I think, certainly for us fans, it's more about vindication and even a small punishment can be used to tarnish the club's greatest ever acheivements.

A small points deduction gives oxygen to those arguing our achievements are tarnished. It’s not something we’d be thrilled about.
A fine however for non co-operation is not something they can hit us with a stick over. At least not in the sense that our accounts were found to be fraudulent.
I’m assuming non co-operation can only be punished with a fine and not a points deduction. Correct me if wrong.

 

[chris85mcfc]

Last year it was mentioned in Going Concern and commitments, which are two strange places. This year it would have been at least disclosed in contingent liabilities if management thought the chance of a financial sanction was anything other than unlikely. It hasn't been, so we can assume management, directors and auditors consider such a sanction unlikely.

For it to be recorded as a contingent liability, they'd have to a) be able to estimate the liability itself b) have a >50% chance of happening

Not sure we'd be able to do/know either of the above at this stage, so I don't think it would appear in there anyway.

Also, I agree with you that it's odd that it ever appeared in going concern, as I don't think any of this would stop/prevent the business from operating in the future.

That would be my take on it not being included in those areas. Where I would expect it to be, is within the risks/threats/headwinds section of the annual report, but it doesn't look as though City have anything like that within their annual report.

 

[halfcenturyup]

The charges are mentioned on page 8 of the report, they have not been left out of the report.

Fair point, but I don't care much about the blurb. I am talking about accounting treatments and disclosures which are defined by International Accounting Standards.

 

[halfcenturyup]

For it to be recorded as a contingent liability, they'd have to a) be able to estimate the liability itself b) have a >50% chance of happening

Fair enough, but what is the rule these days for disclosing a contingent liability if it is possible to crystallise, ie more than unlikely but less than probable (requiring a provision)?

In my days it would have to be disclosed in the note without a number iirc.

But those days were a while ago :)

 

[bobbyowenquiff]

I’d guess not seeing as it’s been mentioned in previous accounts

There will have been a serious discussion about whether or not to include it. The case must be regarded as a very low risk by City’s lawyers and insurers.

 

[halfcenturyup]

Wasn't it amended so the clubs had greater access and scrutiny over the PL deciding on the future club ATP sponsorship deals?

Here is a thing.




I could have sworn when I looked last Friday it had an update copy dated December 6?

Has it been removed? Or am I getting senile?

 

[John Wayne]

There will have been a serious discussion about whether or not to include it. The case must be regarded as a very low risk by City’s lawyers and insurers.

It's not just the implications of any fines - if we are found to have committed serious breaches then we would be liable for tens of millions in compensation to our competitors.

Magic Hat can speculate all he likes, but there's simply no way that auditors "forget" to include the 115 in the report.

 

[Man_City_Loyal]

Expecting a points deduction that's manageable, between 10-20 points, a fine thays manageable and maybe a transfer ban or limit

Doubt we get relegated and doubt we get our titles stripped

Hopefully this sets a rocket up the board so they decide to make us the best team in the world again, no more pandering to neutrals about our net spend and sustainability... let's get aggressive

you think we will?

 

[halfcenturyup]

I was just thinking about this. We've dropped about 15 points over Autumn already and if we don't qualify for the CL latter stages that could be $50m. I think, certainly for us fans, it's more about vindication and even a small punishment can be used to tarnish the club's greatest ever acheivements.

This is true. But my only point for raising this was to counter the growing bedwetting that things went badly in the hearing if we don't spend big in January, or we do, or whatever other sign we think we see.

The accounts, imho, are an important message from the management, directors and auditors nothing bad is going to happen.

Of course, we all hope nothing at all is going to happen ....

 

[St Helens Blue (Exiled)]

RELEGATE US-I DO NOT FUCKING CARE.

Supporting City is what I do. Fuck Magic hat and every other hating outlet