The UK’s audit watchdog says it’s now steering the probe into Manchester City’s accounts.
In a letter to the Commons business select committee, the Financial Reporting Council said it assumed regulatory oversight from the ICAEW on 30 September.
A formal inquiry hasn’t launched yet, but the FRC is already gathering information.
An independent commission earlier ruled City guilty of every breach of Premier League financial rules from 2009‑10 through 2017‑18, including a fabricated £900 million surplus. The club is now appealing that verdict.
With deeper resources and broader authority, the FRC can impose penalties if wrongdoing surfaces. In my view, this could finally curb the financial gymnastics seen in top‑flight football. The body usually monitors listed firms, not soccer clubs.
The regulator may also scrutinise BDO, City’s auditors, to determine whether the audit complied with professional standards.
Sanctions could extend to individual directors or staff at the Etihad outfit who belong to recognised accounting bodies.
BDO ranks as the UK’s fifth‑largest firm, yet it touts a leading role in football, advising more Premier League and Championship sides than any rival.
The commission concluded the club presented a misleading picture of how shareholder money was masked, leaving auditors unaware of the scheme.
City maintains it will challenge the findings, claiming the report is riddled with material errors of law, principle and fact, and is therefore unsafe.
Liam Byrne, chair of the business select committee, urged granting the FRC stronger powers for similar investigations.
He posted on X: “The regulator’s letter reveals gaps in its ability to compel evidence from the club and to pursue directors outside its disciplinary reach.
“This sparks serious doubts about the tools available to hold firms and their leaders to account.
“The government must explain why reforms to close these gaps were dropped and outline what steps will now reinforce accountability.
BDO declined to comment. Will the FRC’s scrutiny force clubs to clean up their books?