SPECIAL REPORT
“simply not true”. CAS, meanwhile, has
commented that “it is not possible” to
say when the matter will be resolved.
The genesis lies back in 2009 when
UEFA enacted its financial fairplay
regulations, forcing clubs to provide
accounted evidence that they were
not spending more than they earned.
Michel Platini, UEFA’s then-president,
was the driving force. His concern was
the increasing number of top-division
European clubs going bankrupt and/or
failing to pay their players
on time and/or failing to
honour transfer payments.
Whatever else may be
ascribed to Platini in the
corridors of UEFA and FIFA
power, he worked a miracle in
pushing the project ahead in
defiance of many big clubs
and some of his own staff
who thought it unworkable.
The regulations threatened
uncooperative clubs with
European bans, fines, the
withholding of prize money
and transfer prohibitions.
However, the preference of
both Platini and his uncertainto UEFA between 2012 and 2016”,
adding that the club “failed to co-
operate in the investigation”. Hence
the two-season ban from European
club competition and €30million fine.
The fine is small change for City, but
any suspension will affect status, TV
revenues and sponsorship income –
neighbours United have already seen
their finances take a hit from European
absence – so how did it come to this?
An investigation was launched after
German newspaper Der Spiegel published
leaked documents in November 2018
alleging City had inflated the value of a
sponsorship deal to mislead UEFA over
compliance with FFP rules regarding
independent revenue sources and
requiring clubs to break even.
The source of the leaks was a
Portuguese computer wiz namedRui Pinto, who has been extradited
home from Hungary and is now in prison
awaiting trial on more than 90 charges.
These concern domestic hacking
offences – which have in turn prompted
tax and fraud-squad raids on Portugal’s
top clubs and agents.
City have history with UEFA and were
fined in 2014 for a previous breach of
regulations. The latest punishment
prompted speculation about the
continuance of manager Pep Guardiola,
who is contracted until the summer of
next year, and superstar players such
as Kevin De Bruyne.
In February, City had an appeal
registered by the Court of Arbitration
for Sport, with the club’s chief executive,
Ferran Soriano, saying the breaches arelegal advisers was carrot rather than
stick: guilty clubs would be invited to
negotiate a settlement over two or
three years in return for a slap on
the administrative wrist.
Platini said: “Fifty per cent of our clubs
are losing money and we need to stop
this downward spiral. We don’t want to kill
or hurt the clubs. This is to help them.
“Living within your means is essential
for all of us and it’s now time for football
to do the same.”
FFP was launched in 2011 and met
predictable teething problems. A string
of lower and middle-order clubs were
punished, prompting complaints that
the rules were a “giants’ charter” which
prevented them from rising up the
football ladder.
Manchester City and PSG were caught
early and settled. So while a UEFA panel
led by David Gill, the ex-Manchester
United CEO, was tasked to devise more
flexibility, City chairman Khaldoon Al
Mubarak commented: “We have moved
beyond the period of heavy investment
required to make the club competitive.”
In other words City and PSG had both
accepted UEFA’s yellow card of a €60m
fine with €40m suspended and squad
limitation as a necessary price for playing
financial catch-up with the Real Madrids
and Barcelonas.
Disciplinary actions began to flow
as more clubs qualified for European
competition and fell within the FFP remit.
In February 2015, Liverpool and Sparta
Prague were cleared of suspectedLeaks...Rui PintoSpeculation...Kevin
De Bruyne (centre)
with Pep GuardiolaCatching up...City
(below right) take
on Real Madrid“They are laughing
at the system. It is
not just about PSG
but also Manchester
City...this is damaging
football”
Javier Tebas, president of the
Spanish league, on Gulf-state
investment