Manchester City's alleged rule-breaking has left a trail of financial consequences for teams across the English top flight

Manchester City's alleged rule-breaking has left a trail of financial consequences for teams across the English top flight. The club's use of "sham contracts to inflate their sponsorship income is at the center of a high-profile case that has far-reaching implications for the sport.

Thirty-five teams played in the Premier League between 2009 and 2018, and every one could potentially claim to have been affected by City's actions. The financial impact is not limited to those who finished runners-up or lost cup finals; it extends to missed Champions League qualification, relegation, and a share of Premier League prize money.

Manchester City has denied any wrongdoing, but the club is guilty as charged on two counts: inflating their sponsorship income by £830m and expenses totaling another £90m. This money was allegedly channeled into the club through a disguised funding scheme facilitated by Sheikh Mansour's 2008 takeover.

The transformation of Manchester City from a mid-table team to a Premier League powerhouse is well-documented. In 1991-92, they finished fifth; their highest placing prior to the Abu Dhabi money influx was eighth in 2004-05. The influx of funds from Sheikh Mansour turned the club around, taking them from being on a par with Stoke City's sponsorship revenues in 2008-09 to eventually surpassing those of Manchester United.

The Premier League's independent commission has described the funding scheme as disguised", suggesting that the money was not always transparent. This lack of transparency raises questions about how much other teams were denied by City's alleged rule-breaking. Did this money cost other clubs a place in the Champions League, or even relegation to the Championship?

The financial implications of Manchester City's actions are still being assessed, but one thing is clear: the club's rise to prominence has had far-reaching consequences for the sport as a whole. The impact on teams who finished outside the top four during this period is particularly significant, and it remains to be seen how this will affect their long-term prospects in the Premier League.

The calculations are based on published prize money figures for the relevant seasons and aim to quantify the potential impact of Manchester City's rule-breaking on other clubs in the Premier League.

For each team that finished below City in the league table during this period, it is assumed they would have potentially missed a payment for one place. This calculation has been applied consistently across all teams that could have benefited from an improved finish, regardless of their overall performance.

The minimum value of being in the Premier League for the next season, minus the received parachute payment, was used to estimate the potential earnings lost by teams who were relegated during this time. This approach provides a conservative estimate of the financial impact on these clubs.

The calculations also take into account City's own earnings from prize money and broadcast revenues during this period. The club received £812.3m in total income from Premier League prize money and broadcast revenues, as well as £300,000 from their three EFL Cup victories.

In addition to the financial impact on teams who finished outside the top four, there are also concerns about the potential long-term effects of City's rule-breaking on other clubs' prospects. The Premier League's 'super-profit' deal with City's owners has paid out a significant amount in recent years.

The estimated total impact of City's behaviour on other clubs could be calculated at £799.5m, based on the figures cited above. This figure is derived from the combination of missed Champions League prize money, domestic cup competition earnings, and Premier League place money.

Tottenham's disappointing finish in the Premier League has been compounded by Manchester City's dominance in European competitions. Over four seasons, Spurs' inability to qualify for the Champions League cost them dearly. In those years, City accumulated a significant amount of prize money from their participation in Europe's top competition.

The disparity between City and Tottenham's earnings is stark. For instance, during the 2014-15 season, City received £71.2m for reaching the Champions League semi-finals, while Spurs earned £17.7m from their Europa League campaign. This difference of £53.5m highlights the financial gap that exists when one team consistently qualifies for Europe and another does not.

Tottenham's struggles to qualify for European competitions have been a recurring theme under various managers. The north London club has finished behind City in the Premier League table six times, resulting in a cumulative prize money difference of £6.6m. This deficit adds to the financial burden that Spurs face due to their inability to compete with City on the European stage.

The 2013-14 season presented an unusual situation where Tottenham qualified for Europe due to City's success in the EFL Cup. Although this was a rare advantage, it still earned Spurs £5.1m from their Europa League campaign. This windfall would not have been possible without City's performance, underscoring the indirect financial benefits that some teams can gain from others' successes.

Liverpool's experience in the 2015-16 EFL Cup final provides another key comparison. The Reds lost to City on penalties after a 1-1 draw, which meant that they missed out on Europa League qualification and the associated prize money. Had Liverpool won the final, they would have entered the Europa League, providing an interesting financial contrast to their actual situation.

This loss of potential revenue for Liverpool serves as a reminder of the significant financial implications that can arise from missing out on European competitions. The cumulative effect of these losses can be substantial, as seen in Tottenham's net financial loss of £119.9m over the four seasons.

Manchester United's Europa League victory in 2016-17 came with a prize money package worth £37.8m, which included a market pool payment of £26.6m based on television rights values.

To gauge the potential financial impact on Liverpool, who were also a top-tier club at that time, we can draw comparisons between their performances and those of Manchester United.

Liverpool's participation in the Europa League would likely have resulted in a reduced market pool share due to the presence of another major club in the competition.

In addition to the market pool payment, Liverpool received Premier League place money of £10.6m over nine seasons, bringing their total financial loss to £48.5m as they finished below Manchester City in all relevant seasons.

City's dominance extended beyond European competitions, with the team winning the FA Cup only once during this period, beating Stoke in 2010-11. The disparity in prize money was significant, with City receiving more than £900,000 over their runners-up, who would have qualified for the Europa League instead.

The financial implications of relegation cannot be overstated, as even parachute payments offer limited protection against the substantial losses incurred by teams forced out of the Premier League.

The financial strain caused by Manchester City's alleged rule-breaking extends far beyond the club itself, affecting several other teams in the Premier League.

Hull City have suffered significantly due to their relegation from the top flight twice during this period, resulting in a substantial loss of £93.78m.

In addition to these losses, Hull finished below Manchester City four times, earning them an extra £5.2m in place money, further exacerbating their financial woes.

This leaves Hull as the second-most impacted team, with total losses amounting to £99m.

The Premier League's financial rewards are structured on a tiered system, where each place above the 20th position earns an increasing number of base payments.

This means that teams finishing higher up the table receive significantly more prize money than those at the lower end, with the difference between first and second place being substantial.

For instance, in the seasons when Manchester City won titles, the value of a Premier League place rose dramatically due to increased broadcast deals.

By 2016-17, the financial difference between finishing runners-up and champions had grown to £1.94m per place, making it even more lucrative for teams to finish at the top.

As a result, teams that finished below Manchester City in those seasons have a legitimate claim for compensation, with some clubs potentially entitled to millions of pounds in lost revenue.