Manchester City held settlement talks with the Premier League to limit potential sanctions over alleged financial breaches. However, the discussions collapsed after the club maintained its innocence, according to people familiar with the matter.
The talks took place before a commission ruled against the Abu Dhabi-backed club. Bloomberg reported that the discussions had not previously been made public.
The proposed deal would have focused on a large financial payment. It would have avoided more severe punishments, such as relegation or the stripping of titles.
However, the talks quickly broke down as Manchester City continued to deny wrongdoing.
Why the Settlement Talks Collapsed
The Premier League’s case against Manchester City involves more than 115 financial charges. A commission appointed by the league found that the club had artificially inflated its financial results by more than £900 million ($1.2 billion).
The commission said the club used revenue from “sham” commercial deals backed by Abu Dhabi funds to bypass financial fair-play rules.
Manchester City could face several sanctions. These include a points deduction, heavy fines or expulsion from the Premier League. The club is appealing the commission’s verdict.
Given the scale of the allegations, any settlement would likely have reduced the scope of the case rather than resolved it entirely, the people said.
Representatives for Manchester City and the Premier League declined to comment.
In a previous statement, Manchester City challenged the commission’s findings.
“The Club’s firm position is that, on multiple grounds, the opinion contains clear material errors, of law, principle and fact and is unsafe,” the club said.
It added: “The Club is innocent of the accusations made by the Premier League and a comprehensive body of irrefutable evidence exists in support of all of its positions, relating to this case.”
Rival Clubs and UK Investment Concerns
Any potential settlement would likely have faced opposition from rival clubs, including Arsenal and Liverpool. Both clubs lost out on Premier League titles during Manchester City’s successful run.
The case has also sparked political disagreements in the United Kingdom. Some politicians have raised concerns about government influence over the proceedings.
The United Arab Emirates has invested more than £30 billion in major UK sectors, including defence, life sciences and technology. Emirati officials have warned that the severity of the ruling could affect future large-scale investments.
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