Did Manchester City cheat HMRC out of £12m?
An independent report suggests Manchester City may have evaded £12 million in UK taxes by inflating income and concealing expenses through sham consultancies. The analysis relies on leaked documents and the findings of an independent commission regarding the club's financial conduct.
Why it matters
The allegations raise significant questions about financial integrity in professional sports and potential legal consequences for one of the world's most prominent football clubs.
Manchester City’s rule-breaking may go beyond football. The independent Commission found that the club inflated its income, concealed expenses and paid a key individual through a sham consultancy. Leaked documents identify him as City’s manager, Roberto Mancini, with payments routed to his company, Sparkleglow Holdings Ltd. We believe the evidence points to £12m in unpaid UK tax. The consequences could include a much larger tax bill and a criminal investigation.
This report is subject to four important caveats.
First, our analysis assumes that the Commission’s findings of fact are correct. City maintains its innocence and says it will appeal , alleging material errors of law, principle and fact (but not identifying any of them).
Second, we have only the heavily redacted, 40-page core decision. The detailed appendices remain unpublished. They are likely substantial: the parties’ document index alone ran to 750 pages.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in