It has been suggested that the Premier League could use Swindon Town’s forced relegation from the top flight in 1990 as a legal precedent for punishing City if they are found guilty of financial irregularities.
Swindon, freshly promoted from League Two, were relegated two divisions after it was discovered they had illegally spent their earnings on player wages. On appeal, Robbins’ penalty was reduced to a first-level demotion.
Given the unprecedented nature of the 115-charge Premier League case against Manchester City, there has been speculation that the club could be relegated if they are found guilty. The Premier League champions have been accused of illegal financing and non-cooperation between 2009 and 2018, but they have strongly denied the accusations and pledged to clear their names.
Hearings before the independent panel are scheduled to begin in November and are expected to last about six weeks, excluding any appeals. The Times suggests the Premier League could use Swindon’s case 24 years ago as a benchmark for the penalties City could face if they are ultimately found guilty of breaching financial rules.
The independent panel that appealed against Everton’s 10-point deduction used previous EFL penalty guidelines as a reference and reduced the penalty to six points. In separate legal action, Manchester City challenges Premier League over related party transactions [APT] They claim the rules are illegal and are seeking damages.
The rules provide for more leeway within spending limits by giving the league the right to request information if it suspects sponsorship deals between entities linked to club owners have been inflated.
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Ahead of the new season, Premier League clubs voted in favor of adopting new financial rules, which are non-binding and will reflect current rules for the time being. A proposal for a spending cap based on a multiple of bottom club TV revenue has been tabled.
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