Football Regulator Could Force Manchester City Owners to Sell

The chair of the Independent Football Regulator (IFR) has said the organisation would have “absolute authority” to compel Manchester City’s owners to sell the club if they are ultimately judged to have operated it improperly.

An independent commission found Manchester City responsible for bypassing Premier League regulations through “artificial” commercial agreements designed to increase reported income or lower costs by more than £900m across nine seasons.

The commission also concluded that the club made coordinated attempts to obstruct and delay the Premier League’s inquiry into those agreements. City have appealed the decision, arguing that the ruling includes significant mistakes involving the law, underlying principles and factual findings, making it unreliable.

Speaking on The Rest Is Football, IFR chair David Kogan said it would be too early to discuss possible measures while the appeal remains unresolved. However, he confirmed that the regulator could require the owners to sell if such action were considered justified.

Kogan explained that the regulator can require an owner to leave a club when it believes the organisation has not been managed in a suitable, fair or proper manner. When asked whether an owner could reject such an order, he said the IFR’s authority in that situation was absolute.

Addressing the prospect of a separate IFR inquiry into City, Kogan said no assessment would be made until all outstanding issues had been resolved. The regulator would then determine whether to begin its own investigation, reach a finding and decide what action, if any, should follow. He added that reaching conclusions beforehand would be a serious error.

Manchester City’s majority shareholder is Abu Dhabi United Group (Adug), an investment company controlled by Sheikh Mansour bin Zayed Al Nahyan, who belongs to Abu Dhabi’s royal family.

Kogan has previously promised to step down if politicians attempt to influence any IFR examination of the club, following concerns that the matter could cause diplomatic tension between the United Kingdom and the United Arab Emirates.

His remarks coincided with renewed attention from the UK accounting regulator toward Manchester City’s financial affairs. In correspondence sent to the House of Commons business, innovation, science and trade committee, the Financial Reporting Council (FRC) stated that it began formally considering the issue from 30 September.

The FRC said it was reviewing the independent commission’s conclusions and carrying out initial enquiries to determine whether sufficient grounds existed to launch a full investigation.