Manchester City could avoid any immediate punishment over their Premier League financial-rule case, with a leading sports lawyer telling TEAMtalk that the club are likely to seek a ‘Stay of Execution’ if sanctions are as severe as anticipated.

Dan Chapman, Managing Partner and Head of Sports Law at Leathes Prior, believes the more serious the punishment handed to City, the greater the likelihood that the club will ask for the imposition of those sanctions to be stayed while they pursue an appeal against the severity of those same sanctions.

Potential penalties could include a points deduction severe enough to threaten relegation, expulsion from the Premier League or transfer restrictions, although the sanctions have yet to be determined.

City are currently preparing their appeal against the Independent Commission’s findings that the club breached Premier League financial regulations, having been found guilty of almost all charges relating to the case.

The club have strongly contested the findings and confirmed they had lodged an appeal, claiming the commission’s ruling contained “clear material errors, of law, principle and fact and is unsafe”.

Asserting their innocence, City also stated that a “comprehensive body of irrefutable evidence [that] exists in support of all of its positions” and has been submitted.

The appeal was lodged on October 1st, with new Premier League rules this season requiring appeals to be heard within 12 weeks of submission. The hearing can last a maximum of five days and, given the complexity of the case, is expected to use the full allowance.

As things stand, the appeal is due to be completed by mid-December before a new three-person panel considers the arguments. However, City could seek to challenge or may already have challenged the application of the new rules, given the club were charged in 2023, three years before the tighter deadlines were introduced.

The same three-person panel that heard evidence during the initial hearing in 2024 and delivered its decision will determine the appropriate sanctions, but likely only once the appeal process against their liability decision has concluded. It is thought unlikely that the Commission would accept any argument from the Premier League that they should proceed to determine those sanctions before the liability appeal is dealt with.

Man City almost certain to ask for ‘Stay of Execution’

The Premier League, effectively acting as prosecutor, will put forward its recommended punishment, while City’s legal team will argue their case.

But the appeal is unlikely to be the end of the matter. As TEAMtalk has previously revealed, City are preparing for a potential High Court showdown as they continue their fight against the findings.

The club have also strengthened their legal defence by bringing in Mark Howard KC, one of the UK’s highest-earning barristers, as they prepare for the next stage of the proceedings.

And it is in that subsequent legal battle that Chapman believes City – who have made a record breaking start to the new season with seven wins from seven under new head coach Enzo Maresca – could seek to prevent any punishment from taking immediate effect.

Speaking exclusively to TEAMtalk, Chapman explained: “City will almost certainly ask for a ‘Stay of Execution’.

“It is up to the Commission itself, but the Premier League would be asked if they oppose or agree to a stay.

“I think the more severe the penalty, the more likely a stay pending an appeal, and perhaps the more likely the Premier League would have to accept it was not in the interests of the sport that a sanction be imposed which could then be overturned on appeal.”

A stay would mean that any sanctions would be suspended while City appeal the decision on sanction, potentially leaving the club able to continue competing under their existing status until the legal process progresses.

Chapman believes the practical difficulties associated with such a scenario would weigh heavily in any decision over whether to stay sanctions.

“How could you relegate or even expel a team from the league only for an appeal to overturn it months later? It would be chaos on a level never seen before,” he added.

Timeline on Man City sanctions explained

The timing of the sanctions decision remains another important factor.

While the appeal is expected to conclude by mid-December under the current timetable, it is not known for sure if that timetable will be complied with, and even if it is, the decision on sanctions would not be likely to arrive until early 2027.

There has also been speculation from some quarters that sanctions could be imposed before the appeal process has concluded, potentially leaving City facing punishment while their legal challenge remains unresolved.

However, Chapman believes that scenario is unlikely in practice, despite the possibility of such an approach in theory.

“In theory, that could happen and in some small cases it has done, but I think some people are reading rules without any experience or consideration of what happens in practice.

“Whilst I do not think the Commission or the Premier League will take into account the prospect of High Court litigation, or alleged legal action from other parties such as Etihad, I do think they will take into account that City are appealing the core decisions on liability, and are quite likely to want to appeal any decision on sanction if they are severe,” he said.

“There is also a narrow route under the Premier League rules for further arbitration. In fairness to City those rights are available to them and only time will tell if they were misguided or not in pursuing such appeals, but I would be surprised if the Commission, at least, though it in the interests of justice or the sport for sanctions to be imposed prior to legitimate appeal routes under the Premier League rules being exhausted.”

For City, the prospect of a stay would offer a potential route to avoiding immediate sporting consequences while they continue to challenge the findings.

Much will depend on the severity of any eventual punishment, the commission’s approach to a request for a stay and the next steps in the club’s legal fight.

But Chapman’s assessment suggests that even if the sanctions prove as serious as some have predicted, the outcome may not necessarily mean immediate punishment for City this season.