The English Premier League has announced that Manchester City has been found guilty of breaching its financial regulations by an independent commission. The breaches occurred between the 2009/10 and 2017/18 seasons. Manchester City, owned by the Abu Dhabi group, was accused of inflating revenues and reducing costs. The club had previously received a fine from UEFA for similar offenses related to breaching financial fairplay rules.
According to the EPL, Manchester City arranged 'sham' contracts with commercial partners and relied on 'sham' agreements with others to artificially inflate the club's revenues and reduce its costs. The club filed misstated accounts and concealed the true state of its finances from its auditors and football regulators. This resulted in Manchester City significantly breaching both the Premier League's and UEFA's spending limits.
During the EPL's investigation, Manchester City was found to have committed multiple breaches of its duties of co-operation and utmost good faith towards the League. Three of the four alleged breaches were upheld. The Premier League detailed how Manchester City artificially inflated its revenues and reduced costs to have over £900 million within the nine-year period investigated.
The EPL's investigation revealed that Manchester City used its Abu Dhabi United Group Investment & Development Ltd (ADUG) company to unethically inject substantial parts of purported sponsors' agreed sponsorship deals. The club also used a fictitious firm to lower operating expenses and used third parties to purchase players' image rights in sham arrangements that allowed the injection of more revenue into the club.
EPL Chief Executive Richard Masters hailed the case as the most significant in the league's history. He called for a quick conclusion to the case and the expected sanctions. The Premier League is committed to moving swiftly through the remainder of the process to provide certainty for the League, its clubs, and fans.
Manchester City has until Friday, October 2, to appeal the independent commission's findings. The club's response to the allegations has not been made public. The Premier League's decision to make the independent commission's findings public reveals that Manchester City made serious breaches of its rules.
The outcome of this case may have significant implications for Manchester City and the Premier League. The club's reputation and future participation in the league may be affected by the sanctions imposed. The Premier League's commitment to enforcing its financial regulations will be closely watched by fans and other clubs.
Key points
- Manchester City found guilty of breaching EPL financial regulations
- Club artificially inflated revenues and reduced costs over nine seasons
- Manchester City has until October 2 to appeal the independent commission's findings
