Man City and Chelsea face relegation if found guilty of FFP breaches

CHELSEA and Manchester City have been warned they could be booted out of the Premier League if found guilty of breaching FFP rules.

City are vehemently contesting the 115 charges brought by Prem legal chiefs in February 2023.

Man City and Chelsea face relegation if found guilty of FFP breaches

And an Independent Commission is expected to start hearing the case in late autumn.

11th place Chelsea have yet to be charged.

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But last summer flagged up financial misconduct committed during the Roman Abramovich era which saw payments made to agents from accounts that did not go through the club’s books.

The Stamford Bridge club’s latest financial accounts showed that £150m was set aside when Todd Boehly and Co bought the club to cover potential legal costs.

And now the two Prem giants have effectively been told they could face the ultimate sanction – by the Commission that deducted Nottingham Forest four points this week.

In their 52-page written reasons, Robert Glancy KC, sports law specialist Mark Hovell and accountancy expert Steve Holt explain why they came to the Forest judgement and put the City Ground club’s £34.5m breach of Profitability and Sustainability Rules in context.

They point to the unlimited sanctions available in any case, “ranging from a warning through to expulsion from the Premier League”.

The Commission added: “Where a PSR breach is ‘minor’, then it will be for other Commissions to determine if any points deduction is necessary, appropriate or proportionate.

“But if the breach is properly described as ‘major’ then it may be the case that even a very severe sanction such as expulsion is more appropriate.”

The scale of the allegations against City and the Chelsea admissions suggest both cases would fit the “major” category IF they are proven.

Each case is assessed separately.

And while the opinion of the Forest tribunal would not be binding on future commissions, that represented an ominous warning to both the Prem giants.

THE PSR STATE OF PLAY
Where clubs in danger stand…
Nottingham Forest: Deducted four points for breaching spending limit by £34.563m. Appeal is likely with final decision then expected by early May.

Everton: Initial 10 point deduction for 2021-22 breaches reduced to six points on appeal. But the club will have a hearing into its admitted 2022-23 breach next week and faces further points loss.

Manchester City: Etihad club emphatically denies the 115 allegations laid against them in February 2023. The lengthy Commission case has been scheduled to start in October or November but a final decision is not expected until March or April 2025.

Chelsea: Blues chiefs flagged up illicit payments made to agents and others during the Roman Abramovich era. Fined £8.6m by Uefa but still to be formally charged by the Prem despite an ongoing investigation.

Leicester: Foxes breached Prem PSR loss limits last season but did not have to report their 2022-23 accounts until this month because of their relegation. That puts the timetable back and means that they will probably face a Prem points deduction next term if they are promoted back to the top flight.