Manchester City's crisis does not seem to be confined to the English Premier League, which recently found the club guilty of breaching its financial rules; the club was also investigated by tax authorities in 2018 on suspicion of resorting to arrangements to reduce its tax liabilities, the Financial Times reported on Wednesday.
The newspaper stated that the British tax authority opened this investigation following the publication of internal emails of the English club in late 2018 by the German weekly magazine Der Spiegel, citing "people familiar with the file".
According to the newspaper's sources, the investigation, which does not involve suspicions of deliberate fraud, has not been officially closed, and the British tax authority has not taken any action against the club.
The British tax authority declined to comment when contacted by Agence France-Presse, pointing to the confidentiality of taxpayer information.
Nor did the club, owned since 2008 by Emirati Sheikh Mansour bin Zayed Al Nahyan, a member of the ruling family in Abu Dhabi, respond to AFP's request for comment on Wednesday morning.
In late September, City was found guilty of "serious" breaches of the Premier League's financial rules during the period between 2009 and 2018, by a decision issued by an independent commission, causing shockwaves in European football.
The club, which has appealed, maintains its innocence and is challenging these findings.
The Premier League, which commissioned the committee itself, opened the investigation in December 2018.
No penalty or announcement date has been set yet, but the club faces the prospect of being stripped of several titles and expelled from the competition in the most severe scenario.
Since its ownership transferred to Emirati investors, Manchester City has won eight Premier League titles and the UEFA Champions League in 2023, bolstered by massive investments in the transfer market.
The ruling may also have geopolitical repercussions, as it would damage the image of a club considered one of the prominent "soft power" fronts of Abu Dhabi, which has long-standing close ties with the United Kingdom.
British Prime Minister Andy Burnham, who previously served as Mayor of Greater Manchester, praised the investments of the club's Emirati owners last week.
However, 10 Downing Street was quick to downplay his remarks, affirming that no one can be "above the rules".
A Downing Street spokesperson said in a statement: "As the Prime Minister made clear, the initial ruling is serious, and there can be no suggestion that anyone is above the rules."
It transpired that City arranged "sham" deals to artificially inflate revenues and cut costs by more than £900 million ($1.2 billion) between 2009 and 2018.
Downing Street said in its statement that the "ongoing independent process" concerning the club must "be allowed to take its course and its findings must be respected."
The spokesperson added: "Where wrongdoing is proven, those responsible should face the appropriate consequences."
