Manchester City face the prospect of points deductions across two seasons that could first send them out of the Premier League and then relegate them to League One, according to the Daily Mail.

The club are preparing an appeal and no final decision has yet been made. A ruling is expected around the end of January.

An independent commission found that Manchester City had breached Premier League financial fair play rules between 2009 and 2018. The findings alleged that the club artificially inflated their income through fictitious sponsorship agreements and other methods while concealing their true financial position.

The case includes allegations involving fake sponsorship contracts, arrangements concerning image rights, obstruction of the investigation and undisclosed payments. Those factors account for 114 of the 115 charges against Manchester City that have been proven.

Oliver Holt, the Daily Mail’s chief sports columnist, has reported that the proposed points deduction could be large enough to guarantee Manchester City’s relegation from the Premier League, even if they achieved a perfect record for the remainder of the season.

The Premier League is also considering a further points penalty for next season, which could result in the club dropping into League One. Direct relegation to League Two was among the options discussed, although the Daily Mail reports that deductions in the current and following seasons are presently regarded as the more realistic outcome.

Championship contenders

The situation is particularly striking because Manchester City have taken maximum points from their first seven Premier League matches this season and lead the table. Tottenham, who spent about 366m euros on transfers last summer, are at the bottom.

Tottenham’s spending since the summer of 2023 has reached 1bn euros. As a result, even if they remain in the top division on sporting merit, the club could also find themselves in the Championship next season alongside Manchester City.

Wolverhampton Wanderers, Southampton, Blackburn, Bolton, Wrexham and more than 20 other clubs would be in line to compete with Manchester City for the Championship title if the penalties are upheld. Clubs such as Preston North End would be expected to fight hard to preserve their place in England’s second tier this season, while the prospect of hosting some of the world’s leading players would provide an opportunity for teams across the division.

That would depend, however, on Manchester City retaining their current squad. The club last played in the Championship during the 2001-02 season.

Since then, Manchester City have remained regular members of the Premier League and have won the English title eight times, the FA Cup four times and the English Football League Cup seven times. They have also lifted the FA Community Shield four times, the Champions League once, the UEFA Super Cup once and the Club World Cup once.

The club’s appeal means the consequences remain unresolved, but Manchester City could be absent from the top levels of English football for several years if the proposed sanctions are confirmed.