Manchester City, a prominent English football club, has been found guilty of serious financial rule breaches spanning nine seasons. An independent Premier League commission discovered that the club used "sham" commercial agreements and other arrangements to artificially inflate revenues and reduce costs by over £900 million between 2009/10 and 2017/18. This allowed City to appear compliant with financial regulations when it would otherwise have breached spending limits.
The commission's findings revealed that City recorded almost £950 million in sponsorship revenue from Abu Dhabi-based companies during the investigated period, but only £119.25 million was paid as basic sponsorship fees. A further £830.69 million was identified as "tagged sums" paid by Abu Dhabi United Group (ADUG), the club's owner, to City. These arrangements enabled City to artificially inflate revenues and reduce costs.
The judgement also examined payments made to former City manager Roberto Mancini through a separate arrangement involving Al Jazira, an Abu Dhabi-based club linked to City's ownership group. Mancini received almost £9 million in payments in addition to his Manchester City salary, but these payments were not declared to the Premier League. ADUG made additional payments worth £7.4 million to a City player that were not included in his contract.
The commission found City guilty of three of four alleged breaches relating to their co-operation with the Premier League's investigation. City "made concerted efforts to stop and frustrate the PL investigation" and failed in its duties of co-operation and utmost good faith during the investigation. The Premier League stated that the club's actions hindered the investigation.
Manchester City has rejected the findings and indicated that they will appeal against the decision. The club's management has not commented on the specific details of the judgement but has expressed their intention to contest the commission's findings.
The Premier League's rules state that available sanctions include a fine, points deduction, and other sporting penalties, with the commission having broad discretion over the punishment. In theory, expulsion from the Premier League is also among the possible outcomes. A major points deduction could put City in serious danger of relegation.
The severity of the sanctions will be determined separately, and a number of possible consequences have been discussed. These include points deductions across multiple seasons, which could significantly impact City's performance and standing in the league. The club's future in the Premier League and potential consequences for its ownership and management remain uncertain.
Key points
- Manchester City faces severe sanctions for breaching financial rules
- The club used "sham" commercial agreements to artificially inflate revenues
- Possible sanctions include a fine, points deduction, and expulsion from the Premier League
