The English Premier League has found Manchester City guilty of breaching financial rules, following an investigation that revealed the club used "sham" contracts to artificially inflate revenue and reduce costs. A independent commission found that the club was guilty of breaching rules over nine seasons, from 2009-2010 to 2017-2018. Manchester City has denied any wrongdoing and plans to appeal the decision.
According to the Premier League, Manchester City used commercial contracts that were not genuine, and similar agreements with other parties to inflate revenue and reduce costs. The club's owners, Abu Dhabi United Group for Investment and Development Limited, provided the remaining amount after sponsors paid only a portion of the agreed-upon amounts. This allowed Manchester City to artificially reduce its operating expenses.
The commission's report revealed that Manchester City's actions resulted in an overstatement of revenue and understatement of costs by over £900 million. This created a false impression that the club was compliant with financial regulations. The report also found that some witnesses provided false evidence during the 42-day hearing, and that some individuals intentionally misled the commission.
The Premier League's chief executive, Richard Masters, described the case as "the most significant in the Premier League's history." He emphasized that the decision marks a significant milestone, but the case is not yet closed, as the club's punishment remains to be determined. Manchester City has until Friday to file an appeal.
Manchester City's chief executive, Ferran Soriano, addressed the club's employees, denying the allegations and stating that the case against the club is based on a single false accusation. He claimed that the evidence presented to the commission proved that the allegations were unfounded. The club plans to appeal the decision, citing "clear errors of law, principle, and fact."
The case has sparked reactions from across the football community. British Sports Minister Lisa Nandi described the Premier League's report as "scathing" and called for a swift and fair resolution. UEFA president Aleksander Ceferin praised Soriano's experience and achievements, but declined to comment on the case. Other Premier League clubs, including Arsenal, Nottingham Forest, and Manchester United, declined to comment.
The outcome of the case could have significant implications for Manchester City and the Premier League. A severe punishment could impact the club's title hopes, European qualification, and prize money distribution. The case has also raised questions about financial governance and the Premier League's ability to hold its top clubs accountable.
Key points
- Manchester City used fake contracts to inflate revenue and reduce costs by over £900 million over a decade.
- The club plans to appeal the decision, citing "clear errors of law, principle, and fact."
- The punishment for Manchester City has yet to be determined, but it could have significant implications for the club's future.
