Key Highlights
- Lord Cruddas said Manchester City’s financial findings could potentially become a criminal matter if accounts were falsified or auditors misled.
- Greater Manchester Police said no referral had been made regarding alleged criminal offences.
- Authorities contacted by BBC Sport gave no indication that an investigation had begun, although some do not routinely confirm investigations.
Questions Raised Over Whether Manchester City Case Could Become a Police Matter
The Fraud Act 2006 states that dishonestly making a false representation with the intention of making a gain or avoiding a loss can lead to a prison sentence of up to 10 years and an unlimited fine if charges are brought and proven. The legal provision has been cited amid questions over whether the findings involving Manchester City could extend beyond football regulation.
Lord Cruddas, a banker and businessman, said the matter could potentially require police involvement if financial records had been falsified or auditors misled.
“Surely the Man City findings are now a police matter,” said Lord Cruddas, a banker and businessman.
“If accounts have been falsified and auditors have been misled then it is potentially a criminal matter. The auditors will call in the police, directors are personally liable for any fraud of a UK company even if it is foreign-owned.”
For the case to move from alleged football wrongdoing to a potential criminal matter, an investigation by the relevant authorities would first be required. UK bodies that can investigate potential financial crimes include regional police forces, the National Crime Agency, HM Revenue and Customs (HMRC) and the Serious Fraud Office.
Authorities Give No Indication of an Investigation
BBC Sport contacted each of those bodies and was given no indication that any investigation had begun. However, some authorities do not routinely confirm investigations because of confidentiality requirements.
Greater Manchester Police said:
“No referral has been made by the relevant authorities in relation to any alleged criminal offences.”
Former Manchester City chairman David Bernstein also raised the possibility of referring aspects of the case outside football’s governing structures during an interview on BBC Radio 5 Live. Bernstein left the club five years before its current owners took control.
“This is very serious and I wonder whether some of these issues might need to be referred to authorities outside of the league,” Bernstein said.
“My immediate thoughts are – can the board of directors continue and should the people involved be suspended immediately?”
Football Finance Expert Questions Wider Investigation
Football finance expert Kieran Maguire said a broader investigation might be unlikely. He suggested HMRC could consider the matter but questioned whether there was sufficient basis for action, while also noting the financial difficulties commonly faced by football clubs.
“HMRC might consider it but there is not a lot for them to go on,” he said. “There is certainly no corporation tax to recover. Football clubs lose money and City would have lost more money had it not been for the activities it undertook.”
Why This Matters
The issue highlights the distinction between alleged breaches of football rules and potential criminal offences under UK law. A criminal investigation would require action by an appropriate authority, and the bodies contacted by BBC Sport had not indicated that such an investigation was under way. The Fraud Act carries significant penalties where dishonest false representation is proven, but no criminal charges or investigation are identified in the reported information.
Frequently Asked Questions
Could the Manchester City case become a criminal matter?
It could potentially do so if relevant authorities investigated allegations such as falsified accounts or auditors being misled. The reported information does not state that a criminal investigation has begun.
Which UK authorities could investigate potential financial crimes?
Potential investigating bodies include regional police forces, the National Crime Agency, HMRC and the Serious Fraud Office.
Has Greater Manchester Police opened an investigation?
Greater Manchester Police said: “No referral has been made by the relevant authorities in relation to any alleged criminal offences.”