Leaked documents suggest Manchester City evaded £12m in tax via Roberto Mancini's dual contract

Key points

• Leaked documents indicate Manchester City paid Mancini’s consultancy fee via his Mauritius-based company, Sparkleglow, rather than Al Jazira, to avoid UK tax deductions.
• The Premier League commission labeled the arrangement a 'sham' because Mancini’s lawyer renegotiated the contract with City’s chief executive, not Al Jazira.
• Tax Policy Associates estimates the unpaid tax and National Insurance could reach £12m, potentially rising to £24m with penalties.
• Manchester City has confirmed it lodged an appeal against the guilty verdict, claiming the ruling contains 'material errors'.
• Etihad Airways, City’s main sponsor, has threatened legal action against the Premier League, stating the findings have 'damaging implications' despite the airline not being named in the redacted report.

Background

This development follows the independent commission’s verdict on September 29, 2026, which found Manchester City guilty of 114 out of 115 charges for breaching Premier League financial rules between 2009-10 and 2017-18. The commission concluded that City used 'sham' contracts to disguise over £830m in owner funding as sponsorship revenue. Manchester City has consistently denied the findings, with CEO Ferran Soriano calling the ruling a 'conspiracy theory'. The club’s appeal is expected to be heard by a new independent panel, with a potential decision by late December 2026.

How outlets are covering it

Football Italia and The Telegraph emphasize the tax implications of the Mancini contract, highlighting the potential £12m in unpaid tax and the risk of criminal investigation. BBC Sport focuses on the broader legal and political fallout, including the FA’s potential involvement and the Treasury Committee’s scrutiny of HMRC. The Financial Times highlights Etihad Airways’ threat of legal action, noting the airline’s denial of any improper arrangements. The outlets differ in their emphasis: Football Italia and The Telegraph focus on the specific tax evasion mechanism, while BBC and The Financial Times focus on the institutional and corporate responses to the verdict.

Why it matters

The potential tax evasion and criminal investigation could have significant financial and legal consequences for Manchester City, potentially affecting its standing in the Premier League and its ability to compete. The appeal process and the potential for further sanctions, including relegation or expulsion, will determine the club’s future. Additionally, the involvement of Etihad Airways and the UAE government raises questions about the integrity of football’s financial regulations and the role of state-owned sponsors in the sport.

What to watch

Manchester City’s appeal is expected to be heard by a new independent panel, with a potential decision by late December 2026. The FA is considering its own investigation, and the Treasury Committee is scrutinizing HMRC’s response. Etihad Airways is seeking legal counsel to protect its interests. The outcome of the appeal and any subsequent sanctions will determine the club’s future in the Premier League.