# Burnham Gets Radical, Oil Flows Recover, Man City’s $1.2B ‘Sham’

An episode of [Bloomberg Daybreak: Europe Edition](https://invisiblenetwork.ai/podcast/1663863397), 30 Sep 2026, 22 min.

Audio: https://podtrac.com/pts/redirect.mp3/tracking.swap.fm/track/UVBrz8bN8aM2Xe47PEPu/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/c1b39a51-1327-40f8-ae83-af80014e0b5c/bf969a64-b455-4e32-96fe-b4d5006304c9/audio.mp3?utm_source=Podcast&in_playlist=8a433f03-1a96-430e-a3d0-af80014e0b7d

Your morning briefing. All the news you need to start your day. On today's podcast: (1) Andy Burnham set out a radical vision to change the country in a keynote speech to the Labour Party's annual conference, taking on controversial issues such as reversing Brexit and changing Britain's electoral system. (2) The latest official figures showed there were 45,000 more 16-24 year-olds leaving than arriving in the UK in 2025, with many young people looking abroad for opportunities due to a challenging labor market. (3) Crude oil flows from the Middle East are returning toward pre-war levels despite continued risks to shipping, according to separate estimates from JPMorgan and Goldman Sachs (4) President Donald Trump endorsed using outside auditors to assess the safety of artificial intelligence systems through an accord with Silicon Valley leaders that seeks to sidestep new government rules in addressing a groundswell of concern over AI risks. (5) Jordan Bardella, the head of the far-right National Rally, said he’s asked his lawyer to lodge a lawsuit after a French online news site published an article alleging he made a series of antisemitic comments over a decade ago. (6) The Premier League said Manchester City artificially boosted its financial results by more than £900 million ($1.2 billion), with the club guilty of all charges related to serious breaches of financial rules. Podcast Conversation: The AI Writing Controversy Doesn’t Extend to Many Workplaces See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios.
[0:04] Speaker 2: Podcasts.
[0:05] Speaker 3: Radio.
[0:06] Speaker 2: News.
[0:10] Speaker 1: This is the Bloomberg Daybreak Europe podcast. Good morning. It's Wednesday,
[0:13] Speaker 1: the 30th of September. I'm Nathan Hager in London.
[0:16] Speaker 3: And I'm Caroline Hepke. Coming up today, Andy Burnham rolls
[0:20] Speaker 3: the dice. The UK Prime Minister makes a radical pitch
[0:23] Speaker 3: to transform the country as he accepts that he may
[0:26] Speaker 3: pay a political price.
[0:27] Speaker 4: JP Morgan and Goldman Sachs say Middle East crude output
[0:31] Speaker 4: is nearing pre-war levels.
[0:32] Speaker 3: Plus, Manchester City's own goal. The Premier League club is
[0:36] Speaker 3: found guilty of serious financial breaches involving sham contracts worth
[0:41] Speaker 3: more than $ 1. 2 billion. Let's start with a roundup of
[0:45] Speaker 3: our top stories. the UK's Prime Minister has set out
[0:49] Speaker 3: a radical vision to change the country. In his keynote
[0:52] Speaker 3: speech at Labour's annual conference, Andy Burnham took on some
[0:55] Speaker 3: of Britain's thorniest political issues, from the state pension to
[0:59] Speaker 3: free elder care and electoral reform. Burnham offered a torrent
[1:03] Speaker 3: of policies. He even opened the door to taking the
[1:06] Speaker 3: UK back into the EU ahead of a meeting with
[1:09] Speaker 3: the bloc.
[1:11] Speaker 5: I will take the opportunity around the summit to lay
[1:14] Speaker 5: out to you, to lay out to the country, what
[1:16] Speaker 5: I believe the different options are for Britain's long-term relationship
[1:23] Speaker 5: with our European partners. And there are different options. And
[1:26] Speaker 5: I will see if we can find consensus around one,
[1:31] Speaker 5: which will give us clarity about our position and the
[1:35] Speaker 5: future of the continent that.
[1:37] Speaker 1: We live in.
[1:39] Speaker 3: The Premier also condemned his recent predecessors as cowardly at
[1:43] Speaker 3: the conference for shirking Britain's fundamental problems. Grabbing many of
[1:47] Speaker 3: the headlines was his pledge to end the state pension
[1:50] Speaker 3: triple lock to help fund a new care service for
[1:53] Speaker 3: the elderly.
[1:54] Speaker 1: In April 2030, we will.
[1:58] Speaker 1: Adjust it.
[1:59] Speaker 5: The state pension will continue to rise every year at
[2:03] Speaker 5: least by prices or 2.5% and it will hold its
[2:07] Speaker 5: value relative to earnings over time so that pensioners will
[2:12] Speaker 5: always share in the rising prosperity of the nation. But
[2:20] Speaker 5: this change will generate significant savings which we will use
[2:26] Speaker 5: to build up our national care service.
[2:31] Speaker 3: But none of Burnham's major announcements would be delivered before
[2:35] Speaker 3: the next election, which he says will take place in
[2:38] Speaker 3: three years' time. Now, the UK's bond market hardly budged
[2:41] Speaker 3: on the speech, with debt costs still being driven by
[2:43] Speaker 3: forces largely beyond Burnham's control.
[2:46] Speaker 4: More young Britons are looking abroad for work, as a
[2:49] Speaker 4: tough jobs market makes it harder to get a foot
[2:51] Speaker 4: on the career ladder.
[2:52] Speaker 1: Bloomberg's Ewan Potts has more.
[2:54] Speaker 6: The latest official figures show that 45,000 more 16 to
[2:58] Speaker 6: 24-year-olds left the UK than arrived last year, a gap
[3:02] Speaker 6: that's widened every year since 2022. According to recruitment sites, indeed,
[3:07] Speaker 6: there's also growing interest in entry-level jobs overseas, even as
[3:11] Speaker 6: interest in foreign roles falls across the wider workforce. Youth
[3:15] Speaker 6: joblessness is currently at its highest in more than a decade,
[3:19] Speaker 6: with nearly a million young people not in work, education
[3:22] Speaker 6: or training. Indeed, says the interest in roles in the US,
[3:26] Speaker 6: still the most popular destination, has declined over the last
[3:29] Speaker 6: three years, with young job seekers looking as far afield
[3:32] Speaker 6: as India and Malaysia. In Brussels, I'm Ewan Potts, Bloomberg Radio.
[3:37] Speaker 3: Now, flows of crude oil from the Middle East are
[3:40] Speaker 3: returning to pre-war levels, according to estimates from JP Morgan
[3:43] Speaker 3: and Goldman Sachs. It comes as Saudi Arabia has managed
[3:46] Speaker 3: to resume half of flows through its east-west pipeline, which
[3:50] Speaker 3: avoids the Strait of Hormuz. Here's our executive editor for
[3:54] Speaker 3: the Middle East and Africa, Stuart Livingston-Wallace.
[3:57] Speaker 7: So, I mean, I think it reflects probably something resembling
[4:00] Speaker 7: reality in that we know a lot more volumes going through.
[4:02] Speaker 7: But I can tell you that Absent of any other information,
[4:05] Speaker 7: if I told you we're back up to 98%, whatever
[4:08] Speaker 7: it is, of pre-war flows, you would expect the oil
[4:10] Speaker 7: price to plummet and plummet by probably $ 50 a barrel.
[4:13] Speaker 1: Why is it not doing that?
[4:14] Speaker 7: Well, it's many months of accumulated deficits, so well over
[4:18] Speaker 7: a billion barrels of lost Middle East supply that happened
[4:21] Speaker 7: in the first few months. I think that was as
[4:23] Speaker 7: of June, so goodness only knows what the number is today.
[4:26] Speaker 3: That was Bloomberg's Stuart Livingston Wallace. Now, despite the uptick
[4:30] Speaker 3: in cargoes, Brent remains on course for a third monthly
[4:33] Speaker 3: gain of about 14 percent in September.
[4:36] Speaker 5: U.S.
[4:36] Speaker 4: President Donald Trump has endorsed independent audits of AI companies
[4:40] Speaker 4: after previously dismissing safety concerns as a hoax. The shift
[4:43] Speaker 4: came after the American leader met with some of the
[4:45] Speaker 4: biggest names in Silicon Valley. At the White House, the
[4:48] Speaker 4: CEOs of Meta, Anthropic, NVIDIA and SpaceX spoke to reporters
[4:52] Speaker 4: alongside the president following a two-hour lunch.
[4:55] Speaker 8: The basic idea is that we want to give the
[4:59] Speaker 8: American people and our customers confidence that the technology works
[5:03] Speaker 8: in the way that we intend.
[5:04] Speaker 1: Whoever wins AI wins.
[5:06] Speaker 9: I think that's very important. But I think the technology
[5:09] Speaker 9: has very real risks. And, you know, the mechanism, how
[5:13] Speaker 9: we address those risks is still under discussion.
[5:16] Speaker 2: This is the.
[5:16] Speaker 1: Largest industrial revolution in history.
[5:19] Speaker 9: And we're going through the single largest infrastructure build-out in
[5:22] Speaker 9: human history. There used to be buildings full of people
[5:25] Speaker 9: doing calculations. But now digital computers do those tasks. And
[5:30] Speaker 9: I don't think anyone is pining to go back and
[5:33] Speaker 9: do calculations all day to do bank interest.
[5:35] Speaker 1: Rates, which is what they used to do.
[5:37] Speaker 4: That was Mark Zuckerberg, Dario Amadei, Jensen Wong, and Elon Musk.
[5:41] Speaker 4: All four leaders agreed to regular meetings on best practices
[5:44] Speaker 4: under a deal that President Trump said was morally binding
[5:47] Speaker 4: but has no legal weight.
[5:48] Speaker 3: France's Marine Le Pen has hit back against allegations of
[5:52] Speaker 3: anti-Semitism against her deputy Jordan Bardella. The far-right presidential candidate
[5:57] Speaker 3: says Bardella, who is leader of her National Rally Party,
[6:00] Speaker 3: has her total confidence. This after online news site Mediapart
[6:05] Speaker 3: alleges that he made a series of anti-Semitic comments over
[6:08] Speaker 3: a decade ago, which Bardella strongly denies.
[6:14] Speaker 8: But for several days now, and I would say visibly
[6:18] Speaker 8: to the general public for the last few hours, we
[6:21] Speaker 8: have been sensing the beginnings of an all-out war, an
[6:25] Speaker 8: attempt to destabilise the presidential campaign, which, let me tell you,
[6:31] Speaker 8: will target us one by one. It began in the
[6:34] Speaker 8: last few hours with the baseless accusations from media parts,
[6:39] Speaker 8: accusations that, as you know, I categorically deny.
[6:43] Speaker 3: Jordan Bardella there speaking. Vara translated during a press conference yesterday.
[6:48] Speaker 3: The National Rally's Marine Le Pen is leading polls to
[6:51] Speaker 3: succeed President Emmanuel Macron in next year's elections. And Bardella
[6:55] Speaker 3: has long been touted as a likely prime minister if
[6:58] Speaker 3: she wins the race.
[7:00] Speaker 4: Apple is expected to sell around 6 million foldable Duo
[7:03] Speaker 4: iPhones this year. The $ 2, 000 device is set to go
[7:06] Speaker 4: on sale next month. This is from an estimate from
[7:09] Speaker 4: Counterpoint Research.com. It offers the first indication of demand for
[7:12] Speaker 4: Apple's first foldable smartphone. Its launch comes as Bloomberg has
[7:16] Speaker 4: learned new CEO John Ternes is already moving to overhaul Apple.
[7:20] Speaker 4: He said to want faster product development and a more
[7:22] Speaker 4: experimental approach.
[7:24] Speaker 3: Those are some of our top stories today. Looking at
[7:26] Speaker 3: the markets, Asian equities, MSCI Asia-Pacific Index up nine-tenths of 1%.
[7:31] Speaker 3: Bond markets look to be steadying. Ten-year treasury yields at 5.23%.
[7:35] Speaker 3: But it was that 30-year yield yesterday that rose almost
[7:39] Speaker 3: two basis points to a 24-year high that catches the attention.
[7:43] Speaker 3: European stock futures this morning are up by eight-tenths of 1%.
[7:47] Speaker 3: SML was the big gainer yesterday, up by 4.2%. As
[7:51] Speaker 3: for oil prices, Brent crude right now at $ 103. 30, up
[7:55] Speaker 3: seven-tenths of one percent, and the dollar heading for its
[7:58] Speaker 3: best month since June. So, those are the markets.
[8:01] Speaker 1: All right.
[8:02] Speaker 4: Well, in a moment, we're going to take you right
[8:03] Speaker 4: back live to Liverpool to get more on the impact
[8:05] Speaker 4: of Burnham's speech. The story that has shocked English football. Well,
[8:10] Speaker 4: I get read in on that maybe with the help
[8:12] Speaker 4: of AI this morning. I'm not going to insult you
[8:15] Speaker 4: by asking whether you have written anything with artificial intelligence chatbots,
[8:19] Speaker 4: but I will ask.
[8:19] Speaker 1: Have you ever been tempted? Yes, definitely.
[8:22] Speaker 3: I do ask AI lots of questions, but I'm afraid
[8:26] Speaker 3: that I'm perhaps an old school reporter. I still got
[8:29] Speaker 3: my pen and notebook and it helps me to remember things.
[8:31] Speaker 3: But I love this story in Bloomberg Businessweek. about how
[8:37] Speaker 3: for those who don't want to slog it, who just
[8:39] Speaker 3: need a LinkedIn post or they need something written to
[8:43] Speaker 3: tell their employees that they are taking up AI. Yeah.
[8:46] Speaker 4: I mean, for people like us who are in the
[8:48] Speaker 4: media business and for novelists, it's like... a doom possibility
[8:54] Speaker 4: if you use artificial intelligence to do your writing for you.
[8:58] Speaker 4: But we spoke in this story with Vishal Sood, a
[9:01] Speaker 4: computer scientist who runs R & D for a company
[9:04] Speaker 4: called Typeface that makes AI marketing tools. And he puts
[9:06] Speaker 4: those out there to help people who don't write for
[9:10] Speaker 4: a living to create marketing. And for them, it might
[9:14] Speaker 4: look like AI slot, but as long as it gets
[9:16] Speaker 4: the point across, that's exactly the point.
[9:19] Speaker 3: Yeah, I think this is the whole debate, isn't it,
[9:22] Speaker 3: about how you use AI in your business, whether it
[9:25] Speaker 3: improves productivity and so on. Look, it's really fascinating. We're
[9:28] Speaker 3: going to put a link to that in our podcast
[9:30] Speaker 3: show notes for you so that you can get in
[9:32] Speaker 3: on the debate. Right. Let's think, though, about the reverberations
[9:36] Speaker 3: from Prime Minister Andy Burnham's big speech yesterday. I was
[9:39] Speaker 3: up there for three, four days in Liverpool, really soaking in.
[9:43] Speaker 3: the atmosphere. Burnham promised a new economy and a new politics.
[9:49] Speaker 3: Bloomberg's James Wilcock is still in Liverpool for us.
[9:52] Speaker 1: Good on you, James. Absolutely.
[9:54] Speaker 3: Still there. So, James, you were in the room. I
[9:57] Speaker 3: was there with the press pack. The speech was pitched
[10:01] Speaker 3: by the prime minister as a circuit breaker, was it?
[10:06] Speaker 1: It was.
[10:07] Speaker 10: I think it might go down as one of the
[10:08] Speaker 10: most consequential speeches in modern UK political history. And the
[10:12] Speaker 10: reason I am going so far in saying that is
[10:16] Speaker 10: Andy Burnham redrew the entire political map. He pledged to
[10:20] Speaker 10: change the electoral system. He abandoned the triple lock, a
[10:23] Speaker 10: system for which pensioners get uprated their benefits every year.
[10:27] Speaker 10: He opened the door to reversing Brexit. He He signaled
[10:30] Speaker 10: that there are going to be coming tax rises and
[10:33] Speaker 10: possible nationalization of utilities. Caroline, you know, any one of
[10:37] Speaker 10: those policies would be enough to lead this podcast on.
[10:41] Speaker 10: It was this deeply personal speech involving his roots, his
[10:47] Speaker 10: father who passed away this month. And I'll tell you,
[10:49] Speaker 10: as someone who was in the audience, the Labour Party
[10:51] Speaker 10: faithful were rapt. This was their man delivering the change
[10:55] Speaker 10: they want to see and they are fully behind him.
[10:58] Speaker 10: And the questions for everyone outside of the room is,
[11:00] Speaker 10: what happens next?
[11:02] Speaker 3: Yeah, it was extraordinary. I mean, it was a sweeping speech,
[11:06] Speaker 3: as you say, James. It was also hugely emotional, wasn't it?
[11:09] Speaker 3: The Prime Minister at some points was almost in tears.
[11:12] Speaker 3: You know, there was so much grief from the loss
[11:14] Speaker 3: of his own father so recently. And I thought also
[11:19] Speaker 3: there's been so much sort of criticism of politics being
[11:22] Speaker 3: very fractured. And to my mind... What I thought about
[11:26] Speaker 3: is conviction politician in many ways.
[11:29] Speaker 1: Yeah.
[11:29] Speaker 4: And in terms of the conviction, what does that say
[11:34] Speaker 4: about the direction that Andy Burnham is taking the Labour Party?
[11:38] Speaker 4: What has he achieved more broadly at this first speech
[11:42] Speaker 4: as prime minister at the party conference?
[11:44] Speaker 10: I think it's a really good question, Nathan, because it
[11:46] Speaker 10: allows us to zoom out and say there are basically
[11:48] Speaker 10: two trends here that Andy Burnham is trying to reverse.
[11:50] Speaker 10: One is his predecessor, Keir Starmer, someone who was seen
[11:53] Speaker 10: as processy and falling in the polls. You go say 94%
[11:58] Speaker 10: of Labour delegates approve of Andy Burnham and what he
[12:01] Speaker 10: was doing. So that speech yesterday achieved the political unifying.
[12:05] Speaker 10: Andy Burnham is now the Labour Party's man and he's
[12:07] Speaker 10: unequivocally in control of that party. The other trend that
[12:11] Speaker 10: he's trying to reverse is the 40 years of neoliberalism. Now,
[12:13] Speaker 10: that was just a talking point until yesterday. Yesterday, we
[12:16] Speaker 10: saw the genuine political direction that Labour wants to go in.
[12:20] Speaker 1: It is clear. It is left wing. It is socialist.
[12:23] Speaker 10: It has a different view for Britain, and he intends
[12:25] Speaker 10: to pursue it. And I have to say, I think
[12:28] Speaker 10: many of the other parties are a bit shell-shocked to
[12:30] Speaker 10: see it. You saw some of the reaction from the
[12:32] Speaker 10: Conservatives from Reform. They said this is going to be
[12:34] Speaker 10: taking a tax on pensioners rather than addressing some of
[12:36] Speaker 10: the deeper challenges of this country. But there is now
[12:39] Speaker 10: a whole new political debate in this country and Andy
[12:41] Speaker 10: Burnham is leading it.
[12:42] Speaker 3: Yeah, I think, though, that it leaves perhaps businesses and
[12:47] Speaker 3: investors scratching their heads because, you know, these policies are,
[12:52] Speaker 3: you know, focused on an aging population in the UK
[12:56] Speaker 3: and they really aren't focused particularly on business. The budget,
[13:01] Speaker 3: where does all of this leave the budget, which is
[13:03] Speaker 3: the more immediate issue? And I think what also is
[13:06] Speaker 3: going to be the reaction from business leaders?
[13:09] Speaker 10: Well, as I was leaving the speech, I bumped into
[13:12] Speaker 10: one of the leaders of one of the B5, which
[13:13] Speaker 10: is sort of the five biggest business lobbies. And they
[13:15] Speaker 10: told me that they shed a tear in that speech.
[13:17] Speaker 10: So this idea that the human impact of the speech
[13:20] Speaker 10: is there.
[13:21] Speaker 1: But you're right.
[13:22] Speaker 10: Andy Burnham wants to tell a deeply political story about Britain.
[13:26] Speaker 10: And business wasn't really part of that story. They are
[13:30] Speaker 10: worried about pensions. I will say that the CBI's Ray Newton-Smith,
[13:33] Speaker 10: a different business lobby leader, said that she really welcomed
[13:36] Speaker 10: the change to pensions. It's an idea that tough changes
[13:38] Speaker 10: are coming. But if you look at AI, if you
[13:41] Speaker 10: look at growth, if you look at the taxes that
[13:43] Speaker 10: Andy Burnham says he's going to raise, businesses increasingly worry
[13:46] Speaker 10: that they're on the hook. And four weeks out from
[13:48] Speaker 10: the budget, we're coming away from this conference heavy on
[13:51] Speaker 10: the vibes, heavy on the politics, but but light on
[13:54] Speaker 10: how they're going to pay for it. And now businesses
[13:57] Speaker 10: are deeply concerned about where they fit into Labour's story
[14:01] Speaker 10: about what they want to do for the country.
[14:02] Speaker 1: Yeah, certainly a very emotional night.
[14:05] Speaker 4: Making politics, it seems, much more personal than we've seen
[14:10] Speaker 4: in this country in the past.
[14:12] Speaker 1: Yeah, absolutely.
[14:12] Speaker 3: James, thank you so much for being with us. Live
[14:15] Speaker 3: from Liverpool, we appreciate it. Look, I was there when
[14:19] Speaker 3: Burnham made the speech at lunchtime yesterday. I do think
[14:23] Speaker 3: that it was hugely emotional and that that was powerful. Also,
[14:26] Speaker 3: the sort of storytelling, the history of his own family
[14:30] Speaker 3: of buying their first home and how he first got
[14:33] Speaker 3: into politics was hugely important in sort of landing his message.
[14:38] Speaker 3: I think also the other line, one of the policy
[14:41] Speaker 3: ideas was to reverse Margaret Thatcher's ban on water companies
[14:46] Speaker 3: being state owned. So, it's, again, an example of where
[14:51] Speaker 3: policy is perhaps going to change, but going to change
[14:54] Speaker 3: in future because we actually know that the issues for
[14:57] Speaker 3: water companies are much more immediate than that policy change
[15:00] Speaker 3: would indicate. So, the main thing is, it's a huge vision.
[15:06] Speaker 3: Burnham said, you either like it or not. You're either
[15:08] Speaker 3: going to buy into it or not. And he's happy
[15:10] Speaker 3: to go to the polls on that. But it's a
[15:12] Speaker 3: long-term vision. And I think that the fiscal issues for
[15:15] Speaker 3: Britain are much more sort of short-term and immediate in
[15:18] Speaker 3: some ways.
[15:18] Speaker 4: What I would have to think then would put a
[15:20] Speaker 4: lot more focus on the budget that's coming in four weeks' time.
[15:25] Speaker 4: I mean, he didn't address short-term issues as far as
[15:28] Speaker 4: we could tell in this speech.
[15:29] Speaker 1: But is that the next pivot point?
[15:31] Speaker 3: Yeah, I think that bond investors are going to be
[15:34] Speaker 3: watching it immensely closely. They did not move on this speech,
[15:38] Speaker 3: but will they or won't they in the budget? There's
[15:41] Speaker 3: a big debate about how big a budget is going
[15:44] Speaker 3: to be. It may be bigger than the Labour Party
[15:46] Speaker 3: wants it to be, but I don't think it's going
[15:48] Speaker 3: to be that enormous. Anyway, that's the big debate, isn't it? Yeah.
[15:51] Speaker 3: And when I was dashing back on the train with
[15:54] Speaker 3: all the other delegates from Liverpool yesterday, I certainly did
[15:57] Speaker 3: see the British Chambers of Commerce, Siobhan Havilland. I saw
[16:00] Speaker 3: Ed Miliband, one of the other ministers, you know, dashing
[16:03] Speaker 3: for the train. I think they had a lot to
[16:05] Speaker 3: think about on the journey back to London. Stay with us.
[16:08] Speaker 3: More from Bloomberg Daybreak Cube coming up after this.
[16:19] Speaker 4: I wonder if anybody was wearing any Man City jerseys
[16:24] Speaker 4: while they were there in support of the man from Manchester.
[16:28] Speaker 4: But this is a story that has really caught not
[16:31] Speaker 4: just English football fans' attention, but really the world with
[16:34] Speaker 4: the Premier League saying that Man City artificially boosted its
[16:37] Speaker 4: financial results by more than £ 900 million.
[16:41] Speaker 1: $ 1. 2 billion. Thanks for putting that in for me. With
[16:44] Speaker 1: the club guilty of all charges. related to serious breaches
[16:47] Speaker 1: of financial rules.
[16:48] Speaker 4: They're also accused of making concerted efforts to stop and
[16:51] Speaker 4: frustrate the investigation into them. Now, Man City's maintained its
[16:54] Speaker 4: innocence and is vowing to fight back. Joining us now
[16:57] Speaker 4: with more on this is Bloomberg's Tiwa Adebayo.
[17:00] Speaker 1: For those perhaps like me.
[17:02] Speaker 4: Who might not be too caught up on what they
[17:05] Speaker 4: were found guilty of, Tiwa, explain to us how Man
[17:09] Speaker 4: City was found to have broken the rules.
[17:10] Speaker 1: Has this happened before? Well, you're right, Nathan.
[17:13] Speaker 2: This is certainly a story that's rocked English football over
[17:16] Speaker 2: the last few days. Even the Prime Minister has got involved.
[17:19] Speaker 2: And I'll just mention he's an Everton fan. So, he's
[17:22] Speaker 2: certainly not wearing the man's shirt.
[17:23] Speaker 1: I think I've heard that, yeah.
[17:25] Speaker 2: But this has actually happened to Everton before. Perhaps we'll
[17:27] Speaker 2: touch on that a bit more later. But in terms
[17:30] Speaker 2: of the rules that have been broken. So, this is
[17:32] Speaker 2: all to do with something called financial fair play and
[17:35] Speaker 2: also the Premier League's profit and sustainability rules. So essentially,
[17:39] Speaker 2: in layman's terms, you cannot spend more than you make.
[17:43] Speaker 2: So if you're buying a whole load of expensive players
[17:45] Speaker 2: or you're building a huge stadium, you have to have
[17:48] Speaker 2: the endorsement deals and the ticket sales to fund it.
[17:51] Speaker 2: And it seems like, according to the Premier League, Manchester
[17:54] Speaker 2: City didn't.
[17:55] Speaker 1: So they are accused here of.
[17:57] Speaker 2: artificially boosting their financial results by more than £ 900 million,
[18:01] Speaker 2: as you mentioned. They've been found guilty of inflating their
[18:05] Speaker 2: earnings through what the Premier League are calling sham commercial deals. So,
[18:09] Speaker 2: the companies that were sponsoring them actually only paid a
[18:11] Speaker 2: portion of the fees that they said they received. And essentially,
[18:15] Speaker 2: the rest of the funding came from the Abu Dhabi
[18:18] Speaker 2: United Group Investment and Development. They are the owners of
[18:22] Speaker 2: the club since 2008. The Premier League is saying they've
[18:25] Speaker 2: broken their rules, but also UEFA saying they've broken some
[18:29] Speaker 2: of their rules as well. UEFA, the governing body for
[18:32] Speaker 2: European football. So, the news of this broke last week
[18:36] Speaker 2: in The Athletic. They were found guilty of 115 charges.
[18:40] Speaker 2: And this latest statement from the Premier League is just
[18:43] Speaker 2: confirmation of that. They've been found guilty of these charges.
[18:47] Speaker 3: OK, that's a pretty long list. What happens next then?
[18:51] Speaker 3: What are people calling for in terms of punishment? Quite
[18:54] Speaker 3: a lot. Are they going to throw the book at them?
[18:57] Speaker 2: Well, there is huge strength of feeling, as you can imagine,
[19:00] Speaker 2: related to this, Caroline, not just from the fans of
[19:03] Speaker 2: the other clubs that we've heard from, major figures in
[19:07] Speaker 2: the footballing and the sporting world. Even the Prime Minister
[19:10] Speaker 2: has spoken on this in recent days. We don't know
[19:13] Speaker 2: as of yet exactly what their punishment will be. There
[19:18] Speaker 2: have been reports that the rest of the Premier League clubs,
[19:20] Speaker 2: certainly the big six, are assessing how perhaps they could
[19:23] Speaker 2: work together to try and get some compensation for lost
[19:26] Speaker 2: revenue and titles club like Arsenal, for example, out of
[19:30] Speaker 2: Champions League European football for a number of years, losing
[19:34] Speaker 2: out on that revenue.
[19:35] Speaker 1: Are they owed something in compensation?
[19:37] Speaker 2: But just looking to precedent, we've seen these sorts of
[19:41] Speaker 2: rules be broken by the likes of Chelsea in the
[19:44] Speaker 2: past year. Now, this was a much smaller example. It's
[19:47] Speaker 2: actually only 47 million that the were accused of spending
[19:51] Speaker 2: over the rules. And they did actually self-report in this instance.
[19:55] Speaker 2: They were given a six-point deduction, which was insane. eventually
[20:00] Speaker 2: suspended on appeal and also a 10 million fine as
[20:04] Speaker 2: well as a suspended transfer ban now this is a
[20:06] Speaker 2: more severe case man city have not only broken these
[20:09] Speaker 2: rules but have been found to have frustrated the investigation
[20:13] Speaker 2: too they didn't self-report like chelsea so we can only
[20:16] Speaker 2: imagine that their punishment will be even more severe.
[20:19] Speaker 4: Even though we've seen incidents, as you mentioned, like this
[20:22] Speaker 4: in the past, then does this tell us something more
[20:24] Speaker 4: broadly about potential rot in football in the Premier League?
[20:29] Speaker 2: Well, I think it really does show us that the
[20:32] Speaker 2: Premier League is about so much more than football. City
[20:36] Speaker 2: was taken over by the Abu Dhabi investment group that
[20:39] Speaker 2: I mentioned. That is backed by Sheikh Mansour bin Zayed
[20:42] Speaker 2: Al Nahyan, who is the brother of the UAE's president.
[20:46] Speaker 2: And Man City's success over the last few years, 20
[20:50] Speaker 2: major trophies in the last 10 years, that was seen
[20:53] Speaker 2: as projecting Emirati soft power beyond the finances. So, it
[20:57] Speaker 2: was a real valuable asset for its owners. And that's
[21:00] Speaker 2: why they spent so much money turning City from sort
[21:04] Speaker 2: of a mid-table side to a winning machine. Some of
[21:07] Speaker 2: the best players in the world, Ballon d'Or nominees like
[21:10] Speaker 2: Erling Haal and the best managers, Pep Guardiola, it's raised
[21:13] Speaker 2: this big question as well of foreign ownership in the
[21:16] Speaker 2: premier league and so i think it will continue to
[21:18] Speaker 2: be a debate in the next few years and few days.
[21:22] Speaker 3: Thank you for listening to Bloomberg Daybreak Europe. If you've
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