English football regulator would have absolute power to force Manchester City sale

The head of the Independent Football Regulator has warned that the body would hold absolute power to compel Manchester City's owners to sell the club if it is confirmed that they ran it improperly. David Kogan made the remarks after an independent commission found City guilty of circumventing Premier League rules through sham commercial arrangements.

• David Kogan says the regulator has 'absolute power' to force a City sale if it deems it necessary.
• A commission found the club inflated revenues or reduced costs by more than £900m over nine seasons.
• City have appealed against a verdict they say contains errors of law, principle and fact.
• The regulator will not act while the appeal is ongoing but has not ruled out its own investigation.
• The UK Financial Reporting Council is already reviewing the commission's findings.

What the regulator could do to Manchester City

Kogan explained on The Rest Is Football podcast that it is too early to discuss specific measures against the club while the appeal remains active. However, he confirmed that the regulator would have the power to remove an owner if it is shown that the club has been run without the required fitness, fairness or propriety. Asked whether an owner could refuse to divest, he was unequivocal: there would be no room to do so.

The irregularities found and City's appeal

The independent commission determined that Manchester City set up sham commercial contracts to increase revenues or reduce costs by more than £900m across nine seasons. It also found that the club made concerted efforts to stop and frustrate the Premier League's investigation into those arrangements.

Manchester City, majority-owned by Abu Dhabi United Group, the investment vehicle of Sheikh Mansour bin Zayed Al Nahyan, have appealed against the ruling. The club argue that the verdict contains material errors of law, principle and fact, and that it is unsafe.

A possible regulator investigation and its limits

Kogan avoided committing to any timetable or direction for a future probe. He said all outstanding questions in the case must first be resolved, and only then would the regulator decide whether to open its own investigation and reach conclusions. To pre-empt that, he said, would be a colossal mistake.

The watchdog's chair has already pledged to resign if he detects any political interference in a potential case involving City, amid concerns that the matter could create a diplomatic issue between the United Kingdom and the United Arab Emirates.

Financial scrutiny widens as the FRC reviews the case

Kogan's comments come amid fresh scrutiny of the club's finances. The Financial Reporting Council confirmed in a letter to the House of Commons business, innovation, science and trade committee that it assumed regulatory consideration of the matter on 30 September. The watchdog is examining the commission's findings and making preliminary enquiries to establish whether there are grounds for a formal investigation.

What is at stake for Manchester City

City face an unprecedented situation in English football. If the verdict is upheld, the club would not only face the sporting and financial sanctions already known, but could also see the regulator activate its most forceful powers, including a potential demand for a change of ownership. The club, dominant in the Premier League over the past decade, could see its control structure altered if the appeal does not succeed.

Frequently asked questions about the Manchester City case