The Treasury Committee has formally reached out to the head of Her Majesty's Revenue and Customs, seeking clarification on the possible tax ramifications stemming from the Premier League’s probe into Manchester City Football Club. In a letter addressed to JP Marks, the permanent secretary of HMRC, the committee, led by Dame Meg Hillier MP, asked whether the tax authority has received a full, unredacted copy of the Premier League’s investigative report and urged the department to acknowledge the significance of the matter and the public interest it generates. The correspondence underscores that HMRC may need to assess whether Manchester City has fulfilled its obligations concerning corporation tax, income tax and national insurance contributions over the nine seasons during which the club was found to have breached the Premier League’s financial regulations.
The committee is keen to understand if any irregularities in the club’s remuneration structures, sponsorship deals, or related party transactions have resulted in under‑payment of taxes or contributions to the National Insurance fund. Dame Meg Hillier’s letter also requests a broader picture of HMRC’s current work on football clubs, asking for an "overview of current HMRC work around football clubs" and specifically inquiring about "common issues around taxation (including the taxation of remuneration) that you have found in their practices and how HMRC is tackling them." The committee set a deadline of Thursday, 15 October, for HMRC to respond. Manchester City has consistently denied any wrongdoing and has signalled its intention to appeal the Premier League’s verdict, a step it must take by the upcoming Friday deadline.
The club maintains that all its financial dealings were conducted in compliance with applicable tax laws and that the Premier League’s findings relate solely to financial‑fair‑play rules, not to tax compliance. The Premier League’s investigation was originally sparked in 2018 when the German news magazine Der Spiegel published a cache of hacked internal emails. Those emails appeared to reveal that Roberto Mancini, who managed City from 2009 to 2013, was operating under a concealed second contract.
According to the report, Mancini was paid a net salary of £1.45 million by Manchester City, while a company linked to him in Italy was receiving £1.75 million annually for a four‑day consultancy role with the UAE Pro League side Al Jazira, based in Abu Dhabi. The dual‑contract arrangement raised questions about the transparency of the club’s remuneration practices and whether the appropriate tax and national‑insurance contributions were being remitted. Sky Sports News correspondent Kaveh Solhekol echoed the Treasury Committee’s concerns, noting that the tax authority could potentially investigate whether the club paid the correct amount of tax and national insurance over the nine‑year period in which it was found guilty of breaching the Premier League’s financial rules.
Solhekol highlighted that the committee’s letter is essentially a request for reassurance that HMRC is taking the case seriously and will scrutinise any possible tax shortfalls. If HMRC decides to launch a formal inquiry, it would likely examine a range of tax‑related issues.
These could include the treatment of player transfer fees, image‑rights payments, sponsorship income, and the tax status of overseas consultancy contracts such as the one allegedly involving Mancini. The authority would also review the club’s payroll records to ensure that employee income tax (PAYE) and employer national‑insurance contributions were calculated correctly for both domestic staff and international personnel. Beyond the immediate focus on Manchester City, the committee’s request signals a broader intent to monitor the football industry’s tax compliance.
Professional clubs generate substantial revenues from broadcasting rights, match‑day sales, merchandising and commercial partnerships, all of which have complex tax implications. HMRC has previously highlighted the need for robust compliance frameworks within the sport, given the high‑profile nature of many transactions and the potential for cross‑border tax planning.
The Treasury Committee’s letter also asks for insight into any systemic issues HMRC has identified across the sector. For example, the authority may have observed patterns of under‑reporting of image‑rights income, the use of offshore entities to minimise tax liabilities, or inconsistencies in the way clubs treat player‑related bonuses for tax purposes.
By obtaining an overview of these trends, the committee hopes to ensure that any legislative or regulatory gaps are addressed, protecting public revenue and maintaining confidence in the fairness of the tax system. The deadline for HMRC’s response—15 October—provides a narrow window for the department to compile its findings and articulate its planned course of action. Stakeholders, including fans, investors and the broader public, will be watching closely to see whether the tax authority will initiate a formal investigation, issue guidance to the sport, or perhaps recommend further parliamentary scrutiny.
In the meantime, Manchester City continues to contest the Premier League’s findings and is preparing its appeal. The club’s legal team is likely to argue that the financial‑fair‑play breaches do not automatically translate into tax offences, emphasizing that any tax liabilities would be determined by separate, independent assessments under UK tax law. Overall, the Treasury Committee’s outreach reflects growing parliamentary interest in the intersection of sport, finance and taxation. By seeking reassurance from HMRC and requesting a broader view of the department’s work with football clubs, the committee aims to ensure that any potential tax discrepancies are identified and addressed, safeguarding public funds while upholding the integrity of the sport’s financial governance.