A new look into Man City is about to start after an MP flagged a big worry.
Manchester City is about to be looked at by an independent financial regulator after an MP made an official request, following the club facing 115 charges.
Last month, Manchester City found out they were guilty of most of the 115 charges brought by the Premier League, and their appeal is still underway. This situation has been hanging over the club all season, but things might get tougher. Labour MP Liam Byrne has shared that the Financial Reporting Council (FRC) is now reviewing City’s audit.
Byrne, who represents Birmingham Hodge Hill and Solihull North, wrote a letter to the FRC chair. The FRC is an independent body that oversees auditors and accountants, making sure companies follow the rules in the UK. In his letter, Byrne asked why the audit system didn’t catch the problems in City’s case earlier.
He said, “How could the audit system miss such big mistakes over nine years? We’re especially worried this only came out through the media, not through regular checks.”
Recently, Byrne gave an update saying the FRC confirmed they are looking into City’s audit. But he also pointed out that the regulator’s letter showed there are “gaps” in the rules, making it hard to make football clubs fully cooperate.
Byrne added, “The regulator can’t always get the evidence they need or take action against some directors because of these gaps. This raises important questions about how companies and their leaders are held responsible. The government needs to explain why they stopped fixing these gaps and what will be done now to improve things.”
Even though Byrne’s comments highlight concerns, this review could cause more trouble for City. It might lead to a full investigation and more close attention on the club.
The key takeaway is that alongside the 115 charges, there could also be accounting checks happening, but no details about possible punishments or timelines have been shared yet.