Manchester, England – April 17, 2013: City boss Roberto Mancini gestures on the Etihad pitch during the league clash with Wigan (Alex Livesey/Getty Images).
Roberto Mancini and Manchester City face accusations of dodging roughly £12 million in income tax and national insurance through a controversial dual‑contract arrangement.
The Premier League’s independent commission flagged a disguised funding scheme that paid the then‑coach an extra salary – in my view, a blatant tax dodge.
Leaked files from Der Spiegel, L’Espresso and others point to Mancini as the individual at the centre of the scheme.
How Mancini’s contracts worked
He received a standard Manchester City contract netting £1.45 million per season after tax deductions.
Simultaneously, he signed a “Consulting Agreement” with Al Jazira for £1.75 million annually, committing to at least four days a year in Abu Dhabi.
Al Jazira, also owned by Sheikh Mansoor, would pay the fee gross, bypassing UK tax.
Tax Policy Associates discovered that City paid Mancini’s Mauritius‑based firm Sparkleglow the exact amount for the first year of the Al Jazira deal, with finance chief approval.
When his lawyer tried to renegotiate the consultancy in 2011, she wrote to City chief Garry Cook instead of Al Jazira, prompting the Premier League to label the move a sham.
Italian tax was settled on the consultancy fee, but UK tax was avoided, meaning City likely owed about £12 million in tax and NI, according to The Telegraph.
The Tax Policy Associates report notes the net‑salary structure saved City money, not the Italian coach.
HMRC is reportedly probing the matter; penalties and interest could push the club’s bill to as much as £24 million.
A criminal inquiry could follow if authorities deem tax or false‑accounting offences were committed.
Mancini brushed off questions before Italy’s Nations League tie with France, saying the alleged double contract is “not my concern – it’s theirs.”