Man City Premier League charges explained

In February 2023, Man City were charged by Premier League with numerous alleged breaches of financial rules; The Premier League has referred the case to an independent commission; Man City won their seventh league title last week and are on course to land a treble of trophies this season. Here, in the Chris Farnell IPS Law blog, we explore these charges, punishments and timecales. 

As Pep Guardiola calls for a swift resolution over Manchester City's alleged breaches of Premier League financial rules, Sky Sports News' chief reporter Kaveh Solhekol explains what are they, how serious the charges are and how long will this process take. The charges will clearly send shockwaves throughout the world of sport. 

Commenting on Tuesday, Guardiola said he will remain at the club next season, even with the spectre of the alleged rule breaches hanging over them.

"Maybe we did something wrong, everyone will know it, and if we are like we believe we are, like we have done as a club for many years in the right way, then the people stop talking about that. We would love it tomorrow.

"Hopefully they are not so busy, and judges can see it and listen to both sides, and at the end decide what is the best. Because in the end, I know firmly that what we won on the pitch we deserve it, I don't have any doubts."

The Premier League has charged Manchester City with breaching its rules on more than 100 occasions over multiple years. If proven these would be the greatest offences committed by a club in the history of the competition.

The independent commission which will consider the charges could recommend that City be expelled from the competition, suspended or docked points if it finds the club guilty. Those sanctions are listed in the Premier League’s handbook but a commission is clear to apply any punishment it considers appropriate.

The six-times Premier League champions have been accused of failing to give “a true and fair view of the club’s financial position”, of failing to “include full details” of player and manager remuneration, of failing to comply with rules regarding financial fair play and failing to cooperate in a Premier League investigation that has concluded after more than four years.

Find out more about these charges and the latest football legal news, check back on the law blog soon. Learn more about Chris Farnell and read his latest news online on this Chris Farnell blog. Make sure you leave your comment and subscribe below. 

 First Woman Referee in Men’s World Cup - and in Qatar 

Yesterday, in a historic first, a woman referee took charge at the Men’s Football World Cup. FIFA is keen to celebrate how French referee Stéphanie Frappart and her assistants, Brazil’s Neuza Back and Mexico’s Karen Díaz, adjudicated the match between Germany and Costa Rica, as proof that it is advancing gender equality. Significantly, this historic moment took place in Qatar where authorities treat women as legal minors in their own country.

In a 2021 report, I documented how Qatar’s laws, policies, and practices require women to obtain male guardian permission to marry, study on government scholarships, work in many government jobs, travel abroad unless they marry or turn 25, and obtain certain forms of reproductive healthcare. Men, on the other hand, need no such permission once they turn 18. Many of these rules don’t have any legal basis and are contrary to Qatar’s own constitution which guarantees women’s equality before the law.

Qatar is keen to show it has three female ministers, many high achieving women, and more female graduates than men and claims that in 2010 it was the only country to have a female lead in the World Cup bid. Many women who have broken barriers said they were either lucky enough to do so with the support of their families, or had to fight for approval over their decisions.

This is great news for women in the sport. Most women told me of the heavy toll such rules have taken on their ability to lead independent lives, including when male guardians denied them permission to drive, travel abroad, study, work, or marry a person of their own choosing. Qatar’s severe discriminatory rules leaves them an outlier even among their own neighbors.

New Term for Head of FLF

Welcome back to our football law news blog. Chris Farnell is a sports lawyer from Hale in Altringham. He owns the firm IPS Law, that represents major players, organisation and club, not just in football but other sports also. In this unofficial blog we keep up on the latest news at the head of the game. 

Paul Philipp has been re-elected as president of the Luxembourg Football Federation (FLF), the umbrella organisation for football clubs in Luxembourg, for a further four years. Philipp, who has been at the helm of Luxembourg’s association for the past 18 years, was confirmed in office at the FLF’s 104th Congress in Strassen on the 15th of this month. 

Mr Paul Philipp was reelected President of the Luxembourg Football Federation (FLF) for an additional four-year term until 2026. He obtained more votes than Luxembourgish global fund and asset management industry professional Mr Claude Kremer. 

Mr Paul Philipp first took office in 2004 and will serve another four-year term after being reelected on 15 October at the FLF’s 104th Congress held in the central Luxembourgish commune of Strasse.

"We will take care of football," Philipp said after his re-election in thanking delegates for their trust. "We're going to try to do everything a little better, and to be available all the time.”

We will try to be attentive,” he added, while emphasising the need for firm decision-making for the good of football in the Grand Duchy. “This is why we are respected, and sometimes criticised,“ he reflected.

Philipp was first elected as FLF president in 2004. Previously, he had played 54 matches for Luxembourg’s national team between 1968 and 1982, before going on to coach the national team from 1985 to 2001. The Luxembourg Football Federation is the governing body of football in Luxembourg. It organises the Luxembourg Football League and the Luxembourg national football team. It is based in Mondercange, to the south of Luxembourg City.

For more football and sports law news make sure you check back soon for more posts. Find more about Chris Farnell Charlton here. For more sports news read the Chris Farnell IPS Law blog also. Make sure you subscribe and leave your comments below. More to come soon! 

 The Rise Of Crypto Sponsors In Sport 

Welcome back to the Chris Farnell sports law blog. Here we bring you the latest sports law news. The UK Government, following their recent “comprehensive review” of gambling laws is considering regulating the use of betting companies in English football, which may include a ban on being the main front-of-shirt sponsors.

This could have a profound impact.  Last season, nine of the twenty Premier League clubs had gambling companies as their front-of-shirt sponsor, as well as another six teams in the Championship.

Teams are however already looking elsewhere for sponsors, and these are increasingly coming from the Cryptocurrency sector – A sector which comes with its own set of challenges and concerns.

Betting firms getting the Boot

Top 5 Football Scandals

 Welcome back to our sports law blog. There has been plenty of controversies involving football, and for a sport attracting plenty of attention and generating plenty of money, it is likely to have its fair share of controversies as well.

Although, most footballers do have excellent virtues and can be a role model on and off the pitch, there are many who are involved in affairs and the like, and when they do get caught, it is devastating for the footballer and those around them.

There have been many scandals in world football ranging from match-fixing to drugs, and many footballers have been in the spotlight for the wrong reasons. This is a list of the top 5 of these scandals, brought to you by the Chris Farnell lawyer blog. 

1. The Calciopoli Scandal 

Calciopoli Scandal in 2006 rocked world football when it emerged that many top clubs in Italy had been involved in influencing the appointment of referees for their games among various other allegations.

Juventus who had won the 2005 and 2006 league were stripped of their titles and were relegated to Serie B where they stayed for one season before returning to top flight immediately. Though Juventus were punished seriously for their involvement, AC Milan and some other clubs could consider themselves fortunate not to endure such serious consequences.

It had a major impact on Italian and world football, and since then, extra precautions have been enforced in football in this regard. Juventus have since not won a single league title and have not been the same force in the last few seasons though under the diligent Antonio Conte, they have shown that they can be serious contenders for the title this season.

2. John Terry's Affair with Wayne Bridge's Wife 

Manchester City defender Wayne Bridge was devastated after it emerged that John Terry could be involved in an affair with his wife Vanessa Perroncel. Bridge and Terry have played together for both Chelsea and England in the past and were considered to be good friends before this incident. It is no surprise that Bridge reacted in this manner and even refused to play for England if he is to play alongside Terry.

In the games against Chelsea that he has taken part since details of the alleged affair emerged, he has refused to shake hands with Terry. The Chelsea defender also had a tough time following the affair, considering that he was stripped of his captaincy before the world cup by Fabio Capello and had to endure plenty of criticism.

3. Robert Hoyzer's Fixing Scandal

German referee Robert Hoyzer was under the scanner after the German football federation suspected him of rigging a Cup game involving Hamburg. He had initially denied the charge but later accepted that he was to be blamed and promised to cooperate completely for the investigation. In the game between Hamburg and Paderborn that was investigated by the DFB, he awarded two penalties against Hamburg and also sent off a Hamburg game.

4. Adrian Mutu Drug Scandal 

Adrian Mutu was signed by Chelsea FC in August 2003 from Parma for big money and then, just over a year of his stay at Stamford Bridge, he was embroiled in plenty of controversy when he was sacked after he was found using cocaine.

This led to his suspension, and he was subsequently moved on by the club. Mutu was ordered to pay a bill in excess of £14.6 million after he was moved on under forced circumstances by the Blues. 

5. The Murder of Andres Escobar

Colombian defender Andres Escobar was murdered in July 1994 just after the team was eliminated from the World Cup due to his own goal, and it is widely believed that it was why he was killed.

It could be some drug traffickers who lost money betting on the team that they targeted the respectable defender. In the above video, it is quite clear that it was an unfortunate error which could happen at times even to the best defenders of the game, and it is a tragedy that he was murdered.

To read more football news and sports law updates, check back soon our blog. You can also read the Chris Farnell lawyer blog here. 

What is sports law?

Welcome to the Chris Farnell sports law blog. Sports law requires an in-depth familiarity with the leading figures in sports, great knowledge of sport laws and regulations, knowledge of sport institutions and legal proceedings within various legal frameworks. Sports law has a global potential and has been regarded as a gold-mine and untapped market, especially in developing regions. 

Recent news

 Manny Pacquiao may have a difficult time fighting again in the United States if he decides to come back from retirement even for just one bout. The 43-year-old eight-division world champion is still dealing with some legal issues with Paradigm Sports Management at the Superior Court of California.

And while there’s buzz that a Pacquiao comeback is imminent this year according to MP Promotions head Gibbons, a source privy to the situation thinks otherwise. The case filed by PSM – a sports management agency that handles UFC star McGregor – stems from its allegations that Pacquiao breached an earlier agreement with them regarding a fight with welterweight contender Garcia.

But the source denied Gibbons’ claims, saying the situation is similar to what happened the last time when they failed to sign Mayweather for a rematch after the Keith Thurman fight in 2019. They said this was stipulated in the contract Pacquiao signed with promoter Premier Boxing Champions in 2018. They added the only way Pacquiao would be able to fight again in the US is to settle his case with PSM, show remorse and apologize for turning back on his obligations. Find out more about Chris Farnell here. 

Read more about the latest news regarding footballers contracts on Chris Farnell blog here 

On 30 January, an decision was made by the Court of Arbitration for Sport (CAS) which FIFPro, the European professional footballers' union, has already said will be the most significant case to impact upon the football transfer system since Bosman. This case was related to  Andrew Webster, formerly of Heart of Midlothian FC (Hearts), who independently, terminated his contract under article 17 of the FIFA Regulations on the Status and Transfer of Players  in May 2006, and then signed for Wigan Athletic FC (Wigan). Andrew Webster joined Hearts in March 2001 for a transfer fee of £75,000 on a four-and-a-half-year contract. He then signed a new four-year contract in July 2003.

Hearts were unhappy so disputed with  FIFA in November 2006, and in April 2007 FIFA's Dispute Resolution Chamber (DRC) ordered Webster and Wigan to pay Hearts £625,000.

In May 2007, Andrew Webster, Wigan and Hearts, who were all unhappy with the DRC's verdict, appealed to CAS. Hearts requested a payment of £4.6 million in contractual damages, including a claim of £4 million in respect of the alleged replacement value of  Andrew Webster and the loss of opportunity to transfer him. Wigan and  Andrew Webster requested that the compensation be fixed at an amount representing no more than the residual value of his contract - his total salary over the remaining term of the contract.

In its findings, CAS stated that the nature of professional sport required  a reasonable balance between the needs of contractual stability on the one hand and the free movement of players on the other, to find solutions that found to be  the good of football by reconciling in a fair manner the various and sometimes contradictory interests of clubs and players.

CAS found that any alleged estimated value of a player on the transfer market cannot be considered because that form of compensation is not clearly agreed upon contractually, and to impose it by regulation would simultaneously cause the club to be enriched and the player to be punished.

CAS also decided that Hearts did not have the right to claim reimbursement of any portion of the transfer fee paid for Andrew Webster because the fee must be reduced over the term of the contract, and Webster had remained with Hearts for longer than the agreed term of four and a half years under his first contract.

The CAS found that , beyond the protected period, it would be admissible for a club to reclaim a portion of the transfer fee as compensation for unilateral termination, unless such a form of compensation was agreed between the parties and stipulated in the employment contract.

It was discovered that the most appropriate criterion of article 17 to apply and determine the level of compensation due to Hearts was the remuneration remaining due to the player under the employment contract upon its date of termination, which was £150,000, plus interest from the date of termination of the contract. This is significantly less that the £4.6 million claimed by Hearts and is also much lower than the £625,000 that the DRC ordered Andrew Webster and Wigan to pay to Hearts under the original petition to FIFA. In addition, CAS found that  Andrews Webster and Wigan were jointly and severally liable to Hearts for the sum on a strict liability basis. They also considered aggravating factors like if conduct of the player, agent or club (current or future) - was left open in this case because there was no evidence of such factors. Such factors may therefore be relevant in future matters.

In Summary the decision although criticised by FIFA, has to be taken at this stage to represent the legal framework within which the football industry must now operate. Clubs must consider how they can protect themselves in the light of this legal framework, this will include careful drafting of players' contracts and more frequent contract renegotiation. Players will also be able to use this decision to pressure clubs into more regular renegotiations of contracts. The likely inflationary effects on wages and destabilisation of contractual stability for clubs will no doubt frustrate FIFA and others within the football industry.

Chris Farnell advises leading Premier League and Football League Clubs, leading sporting and media agents and a number of high profile sporting individuals on a wide variety of matters. Learn more about Chris Farnell Charlton here.