Manchester City FC: Could owners be forced to sell?
This article has been co-authored by James Corner, Paralegal, Commercial and Tech
Manchester City FC has dominated the headlines, following an independent commission’s decision which found the football club guilty of 115 charges relating to serious breaches of the Premier League’s financial rules over a nine-season period.
Much of the discussions have focussed on the sanctions which might follow, ranging from points deductions and transfer bans to expulsion from the Premier League altogether. However, there is a much bigger question to consider: will Manchester City’s owners be forced to sell the club?
IFR’s ‘fit and proper’ test for club owners
The Independent Football Regulator (IFR), established under the Football Governance Act 2025, will introduce a licensing regime for football clubs and apply a ‘fit and proper’ test to existing football club owners from 1st November 2026. This ownership assessment will consider an owner’s:
- honesty;
- integrity; and
- financial soundness, with particular focus on relevant misconduct and regulatory breaches.
Considering the commission’s findings against Manchester City, the IFR seem likely to have grounds to investigate whether those responsible for overseeing the club meet these standards.
The IFR has the statutory authority to force a sale within section 34 of the legislation which allows the regulator to investigate whether an existing owner meets the required suitability standards. If an owner fails this assessment, section 39 allows the regulator to direct them to take reasonable steps to relinquish ownership within a specified period. If they fail to comply, the IFR can go further and issue an ownership removal order under section 43. In other words, the prospect of Manchester City’s owners being forced to sell is far from an empty threat.
Whether the IFR would actually exercise these powers will be interesting to see. Manchester City’s owners, Abu Dhabi United Group (ADUG), have become deeply embedded in the city’s economic development, with Prime Minister Andy Burnham previously describing them as a “huge partner in the building of modern Manchester”. Recent reporting has also highlighted the close political and economic ties between the UK and UAE. With so much at stake, it will be interesting to see whether the IFR will effectively maintain its independence.
It remains to be seen if Manchester City’s owners will be forced to sell. What is clear, however, is that the IFR has the legal power to do so. Points can be deducted and fines paid, all of which would likely harm the Premier League’s commercial strength. Yet, the prospect of a forced sale carries far greater implications, extending beyond the football club to the wider city itself.
How Hamlins can help
Hamlins provides a unique offering to the sports industry, delivering a combination of commercial, IP, corporate, regulatory, privacy and reputation management expertise. If you are in the football community and would like a conversation about your club’s approach to compliance with the latest regulations, please get in touch.