Manchester City and PSG: The Diverging Paths of Gulf Ownership
The clash between Manchester City and Paris Saint-Germain in the Champions League is more than just a game; it’s a reflection of the distinct paths these Gulf-owned clubs have taken in the face of UEFA scrutiny.
Nasser al-Khelaifi, PSG’s president, expressed his frustration with the timing of Manchester City’s guilty verdict released by the Premier League weeks ago. Yet, as he arrives at the Etihad for their match, it’s a moment that underscores how things could have unfolded even worse.
Both clubs share a common history, having been among the pioneers found guilty of breaching UEFA's financial fair play regulations back in 2014. Their violations were significant, dwarfing those of later offenders.
Between 2011 and 2013, as clubs were restricted to a maximum €45m loss in European competitions, PSG racked up a staggering €218m deficit, while City followed closely with €188m. However, both managed to evade serious penalties by signing settlement agreements.
Looking back, those settlements seem rather lenient, imposing only a €20m fine each and some strict spending restrictions in the following years. They faced an additional €40m penalty if they failed to uphold their agreement.
By April 2017, UEFA declared that both clubs had “fully complied with all requirements.” Yet, City’s adherence to those spending limits has been a subject of debate. In 2020, UEFA slapped City with a two-year Champions League suspension for allegedly inflating sponsorship revenues from 2012 to 2016, although this was later overturned by the Court of Arbitration for Sport, which found that many of the claims were either unproven or time-barred.
Fast forward to last month, and the Premier League reported that an independent commission found City had significantly breached UEFA's spending rules between 2009 and 2018, including filing misleading financial statements. City is currently appealing this ruling.
On the other hand, under al-Khelaifi’s leadership since 2011, PSG was handed a €10m fine by UEFA in 2022 for failing to comply with financial regulations since 2018, with an additional €50m suspended.
Al-Khelaifi's irritation with the Premier League stemmed partly from how the release of City’s verdict overshadowed a significant gathering of European Football Clubs in Copenhagen, where he was set to deliver a keynote address. Notably, City’s chief executive, Ferran Soriano, was present in the audience before swiftly exiting to avoid media attention.
During his speech, al-Khelaifi outlined his vision for establishing a global organization and took subtle jabs at FIFA president Gianni Infantino regarding the need for better governance, a stark contrast to his previous stance.
A 2018 report by Der Spiegel alleged that Infantino had played a pivotal role in ensuring that PSG and City avoided harsher sanctions in 2014, including holding “secret talks” and sharing confidential documents.
Emails from Infantino to City’s chairman, Khaldoon al-Mubarak, revealed a proposed settlement that was crafted with a careful choice of language to convey strength. This happened alongside the resignation of UEFA’s investigatory head, Brian Quinn, who reportedly believed the deals were too lenient.
At that time, UEFA stated that settlements were the preferred route for clubs that overspend, focusing on limiting external revenue.
Infantino defended his actions, claiming that his role involved discussions and exchanges aimed at protecting football’s interests.
Both clubs maintain that they have acted in accordance with relevant regulations, but they now find themselves on opposite sides of the financial fair play debate.
While al-Khelaifi arrives in Manchester as a figure aligned with the establishment, representing a commercially cooperative relationship with UEFA, City continues to fight against perceived injustices. Many of their supporters still voice their discontent toward UEFA, but some may be pondering whether a more diplomatic approach, like that of PSG, might have served City better.
