Rangers' 2012 financial collapse offers parallels for Manchester City's future
UKPulse Sport Desk
Following Manchester City's guilty verdict for financial rule breaches, comparisons are being drawn with Rangers' 2012 financial collapse, which led to the Scottish club starting from the bottom of the football ladder.
- Manchester City has been found guilty of serious breaches of financial rules between 2009-10 and 2017-18, involving "sham contracts" to disguise over £830m in funding.
- Rangers' 2012 demise was an insolvency event due to substantial tax liabilities from an Employee Benefit Trust (EBT) scheme.
- Hypothetical discussions suggest Premier League expulsion for City could mean applying to join the English Football League, similar to Rangers' re-entry into the Scottish Football League's fourth tier.
Manchester City's recent guilty verdict for serious breaches of Premier League financial rules has prompted comparisons with the 2012 financial collapse of Rangers. The Manchester club was found to have arranged "sham contracts" to disguise over £830m of funding between the 2009-10 and 2017-18 seasons. City has appealed against the verdict and denies any wrongdoing.
Rangers' situation in 2012 was an insolvency event, triggered by significant tax liabilities related to an Employee Benefit Trust (EBT) scheme. After liquidation, the club's assets were acquired by a new company, and a vote by top-tier clubs rejected their application to remain in the Scottish Premier League.
The Scottish FA recommended Rangers enter the second tier, but a majority of Scottish Football League clubs voted for them to enter the fourth tier instead. Premier League expulsion has been discussed as a potential sanction for City, which could lead to them applying to be accepted into the English Football League, mirroring Rangers' experience.
Why this matters: The potential consequences for Manchester City, including sanctions or even expulsion from the Premier League, could significantly alter the landscape of English football, impacting league structure and broadcast deals.