Manchester City could face relegation if found guilty

February 20, 2026 Oliver Obel

Manchester City could face a points deduction severe enough to result in relegation if they are found guilty of breaching Premier League financial rules, according to former Liverpool managing director Christian Purslow.

Speaking on The Football Boardroom podcast alongside journalist Henry Winter, Purslow dismissed the possibility of a negotiated settlement and said the independent commission reviewing the case would likely follow established disciplinary precedent.

"I don't think these matters get resolved, by the way that the APT [Associated Party Transaction] case did, in an out-of-court settlement between the Premier League and Manchester City," he said.

"I want to be really clear on that. I think it would be a terrible mistake for the Premier League to be tempted ... both sides think, 'You know what, let's just reach an agreement for a reasonable sanction, a reasonable settlement, and move on'.

"I think that would be a terrible mistake."

He added: "My point is a simple one. When this is left to the judges, however frustrating it is that that takes so long, will be in the land of precedent.

"The precedent is sporting sanction. The sporting sanction is likely to be major points deductions, which ultimately could translate into relegation."

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Three years on, no verdict yet

City were charged by the Premier League in February 2023 with 115 alleged breaches covering financial reporting, regulatory compliance and cooperation with investigations. The club strongly deny all allegations, some of which also relate to UEFA rules.

An independent three-person commission heard evidence during a private 10-week hearing between September and December 2024. A verdict has not yet been delivered, and any decision is widely expected to prompt appeals from either side.

In January, The Independent reported that, citing "sources with knowledge of the process," it could be "at least another year" before the case reaches a final conclusion. The Premier League has declined to comment publicly on the expected timeline.

Manager Pep Guardiola said in February 2024 that he anticipated a ruling within a month, but that expectation has not materialised.

What the charges involve

The allegations span nearly a decade, from 2009/10 through 2017/18. They include claims that the club failed to provide accurate financial information, did not fully cooperate with league investigations, and improperly reported player and manager compensation.

Additional alleged breaches relate to the Premier League’s profitability and sustainability regulations, as well as UEFA financial compliance requirements.

The Premier League has not commented on claims that the total number of alleged breaches could be higher due to earlier reporting discrepancies.

Limited precedent in modern era

There is little direct precedent in the Premier League for a case of this scale. However, past administrative punishments in English football are sometimes referenced in discussions about possible outcomes.

In 1990, Swindon Town were relegated after winning promotion to the top flight due to financial irregularities involving illegal payments. Their punishment was later reduced on appeal. The Times has reported that the Swindon case could be cited as a legal reference point, although the circumstances differ significantly from City’s situation.

More recently, Everton and Nottingham Forest have received points deductions for breaches of profitability and sustainability rules, underscoring the league’s willingness to apply sporting sanctions.

Uncertainty continues

The prolonged process has left one of English football’s most successful clubs in regulatory limbo. With appeals expected regardless of the commission’s decision, the case could continue well beyond the initial ruling — extending uncertainty over a matter that could have historic consequences for the Premier League.

Sources: The Independent, The Times, The Football Boardroom podcast, Premier League