Man City will be relegated if found guilty of FFP charges, but expert explains why it is unlikely as Premier League champions launch legal challenge
Manchester City will be relegated from the Premier League if found guilty of the FFP charges, but that is a big question.
This is the verdict from former City financial adviser Stefan Borson, who spoke to talkSPORT about the impending case surrounding the Premier League champions.
The city could find itself in serious trouble after being accused of violating 115 Financial Fair Play rules over an eight-year period.
It coincided with the club's growth to become the dominant force in English football from the 2010/11 and 2017/18 seasons.
There had been talk that City could lose their Premier League titles during this period, having won the league in 2012, 2014 and 2018.
And there is even the possibility of relegation, although Borson does not see such a situation occurring.
Speaking to talkSPORT, the former City financial adviser said: “The scale is on a completely different level (to Everton and Nottingham Forest).
“There is no doubt that, if these allegations are proven, this will at least end relegation. “There is the suggestion of a conspiracy over, effectively, a ten-year period.
“If proven, this is very serious. No one would argue with that. The city will say, I promise you, that this is an accusation of the most serious nature.
“It seems to me very unlikely that the alleged conduct took place over a ten-year period with the type of people who are involved in the club and the companies involved.
“It will be a huge call for any court or tribunal to suggest that this number of people have been dishonest and committed perjury.
“That would be a massive call for some KCs and perhaps a former financial director of a football club to make a call not only against city of manchesterbut against numerous executives, against third parties and, of course, against potentially high-ranking members of foreign states.
In response to this threat, City have launched their own legal challenge against the Premier League, according to The times.
Citizens are pushing for the removal of rules on associated party transactions (APTs), which they say are “illegal.”
These rules came into effect after the majority takeover of Newcastle United by the Saudi Arabian Public Investment Fund.
The goal is to maintain competitiveness in the league by preventing clubs from inflating their wealth through sponsorship deals linked to club owners.
Furthermore, any new sponsorship agreement must be agreed independently and at fair market value.
But The city believes these laws are unfair and declare the fact that they were voted in by a “tyranny of the majority.”
This relates to the Premier League rules which are only approved if 2/3 of the clubs vote in favour.
As a result of this, a two-week arbitration will begin next week, in which the other 19 Premier League clubs will be invited to participate.
Between ten and twelve teams from the top flight have chosen to support the top flight.
This is a completely separate hearing from the City's hearing on its 115 charges, but it could have an impact on that case.
This is because part of the Premier League's case against the champions is based on inflated sponsorship deals by companies linked to Abu Dhabi.
City are alleged to have concealed payments made by their owner Sheikh Mansour through third parties, while four of City's sponsorship deals have links to Abu Dhabi.
So if it is proven illegal to block those agreements, the City could drop many charges before their hearing in November.