Lawyer Stefan Borson, a former financial advisor to Manchester City, believes that the club could face relegation if found guilty of the Premier League’s 115 financial wrongdoing claims against them.
Despite the seriousness of the allegations, Borson suggests that due to the number of people involved in the alleged cover-ups, City may not be held at fault. The accusations span from 2009 to 2018, alleging unlawful financing and a lack of collaboration, which the club vehemently denies.
This week, Nottingham Forest and Everton faced accusations of violating the Premier League’s Profitability and Sustainability guidelines, exceeding the three-season cash loss limit.
Everton had previously received a 10-point penalty for a previous breach of financial laws. Borson highlights the distinction between City’s case and those of Forest and Everton, emphasizing the potentially severe consequences for City if an independent tribunal finds them guilty.
Borson expressed the gravity of the situation, stating, “The scale is on a completely different level [to Everton and Forest]. If the charges are proven, there is no doubt that this will result in relegation.
There is evidence of a conspiracy stretching back nearly a decade.” The Premier League alleges that City’s primary sponsorship agreements were undervalued, claiming they were £8 million instead of £50-60 million, characterizing the entire situation as a fraud involving numerous individuals, including CEOs from various companies.
Referring to the seriousness of the charges, Borson remarked, “If verified, this is really serious. Nobody would disagree with it.” UEFA had previously accused City of financial irregularities, leading to a two-year European suspension that was overturned by the Court of Arbitration for Sport (CAS) in 2020.
Borson believes City will once again emerge victorious, citing the difficulty in presenting cogent proof for such an extensive claim.
He expressed skepticism, stating, “I think they [City] will clear their name because I believe a case of this nature requires a level of cogent proof that appears to be impossible to present to an independent commission.” Borson also highlighted the implausibility of the alleged conduct occurring over a 10-year period with the involvement of numerous individuals connected to the club and related businesses.
Premier League chief Richard Masters announced that an independent panel hearing on the charges is scheduled, although the specific date remains undisclosed.
Given the unprecedented nature and magnitude of the case, potential consequences, including the removal of titles if City is found guilty, remain uncertain.
