Will Man City’s Sister Club Be Investigated for Financial Breaches?

Although Manchester City were recently found guilty of breaching financial regulations, Major League Soccer confirmed that the sister club New York City FC won’t be investigated for potential breaches of their own.

The soccer world is still reeling after the Premier League confirmed Man City “sham,” finding them guilty of nearly all charges related to financial fair play regulation breaches between 2009 and 2018. Although City maintain their innocence, significant sanctions are expected to be levied on the club before the end of the campaign.

City was bought in 2008 by Sheikh Mansour bin Zayed Al Nahyan, and in 2013, the holding company City Football Group was founded in an effort to add more teams to their portfolio. NYCFC became the first team to join City’s ownership group, before entering MLS as an expansion team in 2015.

Although both teams have separate executive boards, NYCFC chief financial officer Andrew Widdowson was City’s financial director during the entire period when the club broke the Premier League’s financial rules, via The Athletic.

With such glaring links to City, questions had emerged over whether or not NYCFC will be investigated by MLS for similar breaches. However, it appears the 2021 MLS Cup champions will escape unscathed from their sister club’s scandal.

Man City’s Guilty Charges Dismissed By MLS

When asked about City’s guilty charges and any potential investigations the league could launch on NYCFC, MLS commissioner Don Garber not only denied that possibility but also praised City Football Group for their commitment to helping MLS grow.

“We’re fortunate we have owners in our league that own multiple teams throughout every league,” Garber said at the Front Office Sports Tuned In summit on Wednesday. “We have [Colorado Rapids owner] Stan Kroneke owning Arsenal, and we have owners that own teams in Spain, in Italy, throughout the rest of the world.

“MLS is looking at how owners act in accordance with our rules here in Major League Soccer. I will say that what NYCFC has done through their own ownership, the City Football Group and investing in our league, building a great team in NYCFC, building an MLS NEXT Pro stadium in New Jersey and obviously their stadium that will open up in Queens is something we’re thankful for and appreciative of.

“But we’re not in the business of looking at what our team owners do in other leagues, and frankly, I don’t think any league would view what other owners do when they have multiple investments throughout other sports.

“The concept of multiple-team ownership is something that we all live through, manage through, and we have our own governance as it relates to what their behavior is.”

New York Red Bulls, Inter Miami and Real Salt Lake are among other MLS franchises whose owners also have stakes in European soccer clubs.

City and their ownership group might be in the eye of the storm with potentially unprecedented sanctions looming on the horizon, but on the other side of the Atlantic Ocean, NYCFC appear safe from any scrutiny.