Overview
- On 30 September the Financial Reporting Council took regulatory consideration of the Manchester City case and is now carrying out preliminary enquiries to decide if a formal audit investigation is warranted.
- The enquiries will examine whether BDO’s audits of City met professional standards and whether any regulated individuals should face sanctions for flawed or misleading work.
- The move follows a Premier League independent commission finding that City breached financial rules from 2009–10 to 2017–18 and artificially inflated revenue by more than £900m, a verdict City is formally appealing.
- Because City is not classed as a public interest entity, initial oversight fell to the ICAEW and the FRC lacks some powers to compel evidence or discipline non-accountant directors, prompting calls for statutory reform.
- If the FRC opens a full investigation it could refer misconduct to professional bodies or impose fines on firms or individuals, and the outcome could affect other clubs and the wider governance of football finances.