Football regulator can enforce Manchester City sale if verdict upheld

The Independent Football Regulator (IFR) will possess "absolute power" to compel Manchester City’s owners to sell the club if they are found to have operated it improperly, according to the chair of the regulator, David Kogan. An independent commission previously found Manchester City guilty of violating Premier League regulations by establishing "sham" commercial arrangements that inflated revenues or decreased costs by more than £900 million over a nine-season span. The commission also noted that City attempted to obstruct the Premier League’s investigation into these arrangements.

Manchester City has filed an appeal against the verdict, arguing that it contains "clear material errors, of law, principle, and fact, and is unsafe." In a podcast interview on The Rest Is Football, Kogan deemed it premature to discuss any actions that the IFR might take while the appeal is ongoing. Despite this, he affirmed that the IFR holds "absolute power" to demand a change in ownership if deemed necessary, stating, "We have the power to ask an owner to step away from a club if we believe that they run a club in a way that is neither fit, fair nor done with propriety."

When asked whether an owner could resist selling, Kogan responded emphatically, saying, "No, no, no. We’ve got absolute power to do so."

Regarding the potential for an IFR investigation into Manchester City, Kogan mentioned, "I am not going to get pushed into making any judgement on this until we’ve seen all of those questions being answered. Then we will have to decide whether we’re going to mount our own investigation and come to a conclusion on that and what we’re going to do. And pre-empting that would be a colossal mistake."

Manchester City is predominantly owned by the Abu Dhabi United Group (Adug), an investment vehicle controlled by Sheikh Mansour bin Zayed Al Nahyan, a member of the Abu Dhabi royal family. Kogan has committed to resigning if there is political interference in any regulation the IFR may apply to City, amid concerns over potential diplomatic issues between the United Kingdom and the United Arab Emirates.

Kogan’s remarks coincide with renewed scrutiny from the UK’s accounting watchdog concerning Manchester City’s financial practices. The Financial Reporting Council (FRC) indicated in a letter to the House of Commons business, innovation, science and trade committee that it initiated "regulatory consideration" of the matter on 30 September. The FRC revealed it is reviewing the independent commission’s findings and conducting "preliminary enquiries" to determine if there are grounds for a formal investigation.