Manchester City is facing calls for a criminal investigation over alleged unpaid tax amounting to as much as £12 million, according to a report by a tax policy think tank. The report centers on payments made to former manager Roberto Mancini, who led the club to a Premier League title in the 2011-12 season. It suggests that a portion of Mancini’s remuneration was disguised through a consultancy contract with an Abu Dhabi-based firm, potentially enabling the club to avoid paying the proper taxes.
According to the investigation, Mancini was officially paid a base salary of £1.45 million per year through the UK tax system. However, leaked documents indicate he also received an additional £1.75 million annually from the Al Jazira Sports and Cultural Club for consultancy work, a role described as requiring only four days of annual engagement. The consultancy contract has been characterized by a Premier League panel as a “sham” arrangement.
The total payments linked to Mancini and associated firms reportedly reached nearly £9 million, with the think tank estimating that if tax and National Insurance were not correctly applied to these off-book payments, the potential liability for Manchester City—including penalties and interest—could rise to £24 million. The report highlighted the possibility of a criminal probe, noting that dishonest falsification of documents for financial gain carries a maximum prison sentence of seven years. However, it also stated that there was no direct accusation of wrongdoing by Mancini or specific Manchester City individuals, but called for investigation to clarify the circumstances.
The issue has drawn political attention, with a parliamentary select committee requesting that HM Revenue & Customs (HMRC) disclose whether an investigation will be launched. Some commentators, including Tory peer Lord Cruddas, have suggested that falsified accounts and misleading auditors could constitute a criminal matter. HMRC declined to comment on the pending inquiries.
An additional complexity arises from the status of Manchester City chairman Khaldoon Al Mubarak, who reportedly has diplomatic immunity due to his official role in Abu Dhabi’s government and has been listed as a UK-approved diplomat since 2020. While there is no suggestion of wrongdoing by Al Mubarak, his immunity could pose challenges for potential law enforcement or Serious Fraud Office action. Legal experts have also noted that the immunity might affect related litigation, as rival clubs are expected to pursue damages related to City’s financial dealings.
Mancini has distanced himself from the controversy, stating that the allegations concerning the dual contract are not his concern. Manchester City has not commented directly on the tax claims but intends to appeal all charges. Al Mubarak has maintained a confident stance, asserting that the ongoing allegations have not changed the club’s position.