City suggested to be underreporting losses to evade Financial Fair Play regulations.
Manchester City are facing a fresh probe from UEFA about their finances, following the debacle surrounding the Frank Lampard transfer, with the Mail reporting that UEFA are concerned that City may be underreporting their losses in a bid to circumvent Financial Fair Play regulations, for which the club have already been fined £16 million.
The suggestion is that City’s parent company, ‘City Football Group’, has set up subsidiary companies to allow them football club itself to underreport losses – two companies are suggested to have been set up and reported combined losses of £25.9m in 2013/14, with both set up primarily to carry out work on behalf of Manchester City.
City were fined £16m for a previous breach of the stringent regulations, a breach that also saw their transfer spending and wage bill restricted, as well as the size of their squad for the Champions League being cut, and UEFA are now set to investigate whether City have looked to avoid another rap through nefarious means.
With reports suggesting that the club are set to push ahead with a £30m move for Swansea City striker Wilfried Bony, the club certainly appear confident with their ability to meet the rules, although that could now be put to the test if the investigation pushes ahead.