Regulator Claims 'Absolute Power' to Force Manchester City Sale

Football's new regulator can force Manchester City's owners to sell the club if an independent commission's guilty verdict survives appeal, according to the watchdog's chair, David Kogan, who said the body holds "absolute power" over ownership decisions.

An independent commission has already found City guilty of circumventing Premier League rules. The club set up "sham" commercial arrangements that inflated revenues or reduced costs by more than £900m across nine seasons, the commission ruled. It also found City made "concerted efforts" to "stop and frustrate" the Premier League's investigation into those arrangements.

City have lodged an appeal. The club claims the verdict "contains clear material errors, of law, principle and fact, and is unsafe".

What can the regulator actually do?

Kogan, chair of the Independent Football Regulator (IFR), told the podcast The Rest Is Football that it was premature to discuss action while the appeal runs. But he left no doubt about the IFR's ultimate authority over club owners.

"We have the power to ask an owner to step away from a club if we believe that they run a club in a way that is neither fit, fair or done with propriety," Kogan said.

Asked directly whether an owner could refuse to divest, Kogan replied: "No, no, no. We've got absolute power to do so."

On whether the IFR will investigate City itself, Kogan refused to commit. "I am not going to get pushed into making any judgement on this until we've seen all of those questions being answered," he said. "Then we will have to decide whether we're going to mount our own investigation and come to a conclusion on that and what we're going to do. And pre-empting that would be a colossal mistake."

Who owns Manchester City?

Manchester City are majority-owned by Abu Dhabi United Group (Adug), an investment vehicle owned by Sheikh Mansour bin Zayed Al Nahyan, a member of the Abu Dhabi royal family. Any forced sale of the club would therefore touch one of the world's wealthiest ownership groups and a state-linked investor.

Kogan has already pledged to resign if any political interference affects an IFR investigation into City. The concern is real: observers have warned that action against the club could create a diplomatic issue between the United Kingdom and the United Arab Emirates, given the ownership's royal connections.

Is a second watchdog now circling?

Kogan's comments landed alongside fresh scrutiny of City's finances from the UK's accounting regulator. In a letter to the House of Commons business, innovation, science and trade committee, the Financial Reporting Council (FRC) confirmed it assumed "regulatory consideration" of the matter on 30 September.

The FRC said it is examining the independent commission's findings and making "preliminary enquiries" to establish whether grounds exist for a formal investigation. That process could add an accounting dimension to the legal fight, running in parallel with City's appeal.

What happens next?

Three processes now run concurrently, and each carries its own stakes. City's appeal will test whether the commission's findings hold up on law, principle and fact. The FRC's preliminary enquiries will determine whether the club's financial reporting warrants a formal investigation. And the IFR will decide, in Kogan's words, whether to "mount our own investigation" once the appeal questions are answered.

For City's Abu Dhabi-linked ownership, the combination is uncomfortable. A regulator with self-described "absolute power" over ownership, an accounting watchdog actively reviewing the case, and a £900m commission finding all point in one direction: the outcome of the appeal will shape not just City's Premier League future, but potentially who owns the club at all.