Report Mancini sham contract let Manchester City avoid £12m in tax

Report Mancini sham contract let Manchester City avoid £12m in tax Italy coach Roberto Mancini and Manchester City are accused of potentially avoiding £12m in income tax and national insurance over his controversial double contract, which could prompt a criminal investigation. Part of the over 100 charges that the club was found guilty of by the Premier League independent commission was of using a “disguised funding scheme” to pay then-coach Mancini an extra salary. Although the official report is heavily redacted, the leaked documents via Der Spiegel, L’Espresso and others suggest the individual was Mancini. How Mancini’s contracts worked NORWICH, ENGLAND – DECEMBER 29: Manchester City manager Roberto Mancini looks on ahead of the Barclays Premier League match between Norwich City and Manchester City at Carrow Road on December 29, 2012 in Norwich, England. (Photo by Julian Finney/Getty Images) It was achieved by giving the Italian a regular contract at Manchester City worth £1.45m per season net, after deduction of tax. On the same day, he signed another contract with Al Jazira for a “Consulting Agreement” worth £1.75m per year for coaching services in Abu Dhabi for “a minimum of 4 days per year.” This would be paid without deduction of tax by Al Jazira, a club that like Manchester City is owned by Sheikh Mansoor. MANCHESTER, ENGLAND – AUGUST 23: General view outside the stadium as fans take photos next to the Colin Bell, Francis Lee and Mike Summerbee statue prior to the Premier League 2026/27 match between Manchester City and AFC Bournemouth at Etihad Stadium on August 23, 2026 in Manchester, England. (Photo by Michael Steele/Getty Images) Tax Policy Associates looked through the leaked documents and found that Mancini’s company Sparkleglow, based in Mauritius, was paid the precise sum for the first year of the Al Jazira contract by Manchester City instead, and it was authorised by the head of finance at Manchester City. When Mancini’s lawyer tried to renegotiate the consultancy contract in 2011, rather than contacting Al Jazira, she wrote to Manchester City chief executive Garry Cook, so the Premier League investigation dubbed this “a sham.” MANCHESTER, ENGLAND – APRIL 17: Manchester City Manager Roberto Mancini reacts during the Barclays Premier League match between Manchester City and Wigan Athletic at the Etihad Stadium on April 17, 2013 in Manchester, England. (Photo by Alex Livesey/Getty Images) Italian tax was paid on this consultancy fee, but not British tax, so the report including from The Telegraph suggests Manchester City should’ve paid circa £12m between income tax and employee National Insurance. The report from Tax Policy Associates explains that because Mancini’s deal was “net,” the saving was made by Manchester City here and not by the current Italy coach. Notably, it is implied that HMRC have probably already opened an enquiry into this, so adding interest and a penalty, it could cost the Premier League club up to £24m. PARMA, ITALY – AUGUST 22: (L-R) Leonardo Bonucci and Roberto Mancini attend the Serie A match between Parma Calcio and Cagliari Calcio at Stadio Ennio Tardini on August 22, 2026 in Parma, Italy. (Photo by Luca Amedeo Bizzarri/Getty Images) It could feasibly also prompt a criminal investigation into whether tax offences or false accounting offences were committed. Mancini has already been asked about the matter when preparing for Italy’s next Nations League game against France, noting “the alleged double contract is not my concern. It’s their issue, not mine.”