Regulator Can Force Man City Sale, Says Chair

The Independent Football Regulator (IFR) possesses the authority to mandate the sale of Manchester City's ownership if they are ultimately deemed to have run the club improperly. This was stated by the watchdog's chair.

An independent commission found Manchester City guilty of violating Premier League rules. The commission determined the club established "sham" commercial agreements to artificially inflate revenues or reduce costs by over £900 million across nine seasons.

The commission also found the club made "concerted efforts" to obstruct and hinder the Premier League's investigation into these arrangements. Manchester City has filed an appeal, arguing the verdict contains significant legal, principle, and factual errors, rendering it unsound.

David Kogan, chair of the IFR, informed the podcast "The Rest Is Football" that it was premature to discuss any actions his organization might take while the appeal process is ongoing. However, Kogan confirmed that the IFR holds the "absolute power" to force a sale by the club's owners if deemed appropriate.

"We have the power to ask an owner to step away from a club if we believe that they run a club in a way that is neither fit, fair or done with propriety," Kogan stated. When asked if an owner could refuse to divest, Kogan responded, "No, no, no. We’ve got absolute power to do so."

Regarding the possibility of the IFR investigating Manchester City, Kogan commented, "I am not going to get pushed into making any judgment on this until we’ve seen all of those questions being answered. Then we will have to decide whether we’re going to mount our own investigation and come to a conclusion on that and what we’re going to do. And pre-empting that would be a colossal mistake."

Manchester City is primarily owned by Abu Dhabi United Group, an investment entity belonging to Sheikh Mansour bin Zayed al-Nahyan, who is a member of the Abu Dhabi royal family.

Kogan has already committed to resigning if any political interference occurs in an IFR investigation into Manchester City. This statement comes amid concerns that such an investigation could create diplomatic tension between the United Kingdom and the United Arab Emirates.

Kogan's remarks were made as the UK's accounting watchdog intensified its scrutiny of Manchester City's finances. In a letter addressed to the House of Commons business, innovation, science and trade committee, the Financial Reporting Council (FRC) confirmed it began "regulatory consideration" of the matter on September 30.

The FRC indicated it is reviewing the independent commission's findings and conducting "preliminary enquiries" to ascertain if there are grounds for a formal investigation.