English football executives met for a private dinner in New York in October 2017. Manchester United owners Joel and Avram Glazer and the club's executive vice-chairman Ed Woodward sat down with Liverpool owner John Henry and Arsenal chief executive Ivan Gazidis. The meeting took place exactly seven days before a vote on the distribution of future international television revenue. Representatives of Manchester City, Chelsea and Tottenham were not invited. Less than a year later, the league approved a formula linking part of the overseas payments to league position.
For Manchester City supporters, the meeting became the defining symbol of what became known as the “Red Cartel”: a coalition of Manchester United, Liverpool and Arsenal, historic powers whose influence has shaped the rules of English football for decades.
A shift in the balance and financial barriers
After Sheikh Mansour arrived at Manchester City in September 2008, the traditional elite reacted immediately. By January 2009, Arsene Wenger had called for limits on injections of outside capital. In 2011, John Henry publicly mocked City's 400-million deal with airline Etihad, asking on social media:
How much did the losing bidder offer?
Clubs with established commercial bases began openly lobbying for strict limits. In January 2013, Manchester United, Liverpool and Arsenal, joined by Tottenham, sent league officials a formal letter demanding tougher financial rules. The profitability and sustainability rules (PSR) later introduced, allowing losses of up to £105 million over a three-year cycle, effectively entrenched the advantage of clubs with vast historic revenues.
The Super League shattered the myth of an alliance
The theory of an unbreakable “Red Cartel” began to crack in April 2021 with the attempted creation of a European Super League. Manchester City did not oppose the elite but joined the six English conspirators alongside Manchester United, Liverpool, Arsenal, Chelsea and Tottenham. With vast revenues at stake, the main rivals united. The project's failure cost the English six a combined £22 million in fines and left them facing the threat of a 30-point deduction if they repeated the breakaway.
New victims of the rules
Other ambitious projects later fell foul of the financial restrictions:
- Newcastle United: after their change of ownership in October 2021, the club hit the PSR ceiling. In January 2024, the Saudi investors were forced to consider selling key players to balance the books.
- Aston Villa: after qualifying for the Champions League in 2024, Villa sold Douglas Luiz to Juventus for £42 million and Moussa Diaby to Al-Ittihad for 50 million to comply with the rules. They also carried out a series of academy-player swaps with Everton and Chelsea.
The battle over sponsorship rules and the 115-charge case
The fight over associated party transaction (APT) rules, introduced in December 2021, moved into the courts. In October 2024, an arbitration panel found that the exclusion of interest-free shareholder loans from the rules was unlawful, upholding some of Manchester City's claims. In November 2024, however, 16 clubs voted for an updated package of restrictions, with only City, Newcastle, Aston Villa and Nottingham Forest opposed. A final settlement between the league and City was signed in September 2025.
The main dispute remains the proceedings over 115 charges. In September 2026, an independent commission found Manchester City guilty on all counts of serious financial breaches involving more than £830 million between 2009 and 2018. The club rejected the verdict and lodged an appeal on 1 October 2026.
The traditional powers do not need a secret conspiracy: their dominance is built into a system in which the rules are shaped by those who benefit most from them.
