Manchester City and FFP: An Update

In what was broadly expected to be a quiet week for Manchester City, two stories have appeared in the media regarding UEFA and FFP.

The FFP saga in relation to Manchester City has now been going on for around 6 years and despite headlines to the contrary, probably shows no sign of ending any time soon.

This week two stories have appeared in the media which have confused many of the fans, who are struggling to keep up with the latest position and amongst journalists who have incorrectly interpreted some of the revelations.

Here at Man City Square we have decided to try and explain what has happened so far, what has happened this week and what is likely to happen next.

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What happened with FFP?

FFP was a system brought in by UEFA to try and protect the future of sporting competition by preventing clubs from spending beyond their means.

Why are City in trouble with FFP?

City were found to have failed the FFP test in respect of 2012/13 season, specifically in relation to how payments from sponsors were treated in the calculations. City feel the regulations were unfair because they were changed mid way though the assessment period to ensure City and PSG failed.

City were punished for this failure and accepted a fine, part of which was suspended and a 1 year restriction on UEFA competition squad size.

City were unhappy with the punishment, feeling it was unfair but accepted it in an attempt to draw a line under the matter and move on, knowing income had grown since ,so significantly as to render FFP no longer a concern.

So what happened next?

German tabloid Der Spiegel published a series of reports last summer based upon stolen emails which were part of football leaks. These alleged City had mislead investigators from UEFA back in 2014.

UEFA consequently reopened their investigation for the period and charged City. City maintain this is ridiculous because the emails were stolen and have been published out of context as part of a deliberate attempt to smear the club.

City believe this subsequent investigation by UEFA has been a witch hunt and proper scrutiny and in investigation has not taken place. City have maintained their innocence throughout.

So what happened yesterday?

Two journalists working for the Athletic broke a story based on strong information that UEFA will shortly sanction City by way of a further fine and a Champions League ban will not be imposed.

What happened today?

After UEFA reopened the investigation into City, the club appealed to CAS saying UEFA had abused legal process. CAS have basically announced today that because the UEFA investigation has not concluded yet, they have no jurisdiction yet.

So where are we now?

Same as we were. We are awaiting the UEFA disciplinary committee to announce their findings and punishment which will in turn go to the UEFA executive for implementation. Given the way UEFA works, this will likely not happen until after the Champions League Group stages have finished- so not until Friday 13 December at the earliest.

So what happens next?

City will find out the UEFA sanction by mid December and given what has happened so far, UEFA are likely to have found City guilty and will impose a sanction.

City will not accept a sanction and will appeal the judgement to CAS, and that matter will likely not be heard for 9 to 12 months, meaning it is unlikely there will be any Champions League ban for either this season or next.

Should City not have their name cleared by CAS I believe they will then take the matter to the Courts in Switzerland, where UEFA are based. That course of action would probably take a further 12 months.

All of this means that UEFA are in a difficult position right now. There is most likely a game of brinkmanship occuring through media leaks. The best solution for UEFA is for City to accept a lesser punishment. But City are anxious to clear their name completely, so are unlikely to accept any sanction which implies guilt. This means there is no doubt some pragmatic negotiation going on right now between the parties.

However, given the increasingly entrenched positions on both sides, it seems unlikely an acceptable compromise agreement will be reached. Yet, pragmatism alone suggests an acceptable solution must be found.

As it stands, even if UEFA win in Court it may take several years and they will then be in an invidious position of trying to implement a Champions League ban 10 years after an offence taking place, that alone would be worthy of further subsequent legal challenge as principles of natural justice would appear to be abused.

There are conspiracy theorists amongst City fans who believe the purpose of the football leaks and FFP reinvestigation is to try to tarnish the image of City and specifically the achievements of the Guardiola legacy in a concerted attempt to enforce a status quo. The longer the FFP matter continues to drag on, the more likely this interpretation may seem.

As City fans we may have to get used to the insinuations dragging on, and no matter how tiring and debilitating they may be, we need to rekindle our resolve, because the only true given, is that these matters will continue to run and run.