Manchester City has been found guilty of systematically breaching Premier League financial rules for nine seasons. An independent commission discovered that the club arranged "sham" commercial contracts to disguise over £830 million in funding from their owners, the Abu Dhabi United Group. The club was found guilty of all serious financial charges brought against it between 2009-10 and 2017-18. Manchester City also faced charges for failing to co-operate with the investigation.
The commission found that Manchester City recorded £949.94 million as sponsorship income during the nine-season period, but only £119.25 million constituted genuine sponsorship payments. The remaining £830.69 million allegedly came from the club's owners. The club used other agreements to conceal costs, bringing the combined value of artificially inflated revenue and reduced expenditure to over £900 million. These arrangements allowed City to appear compliant with Premier League and UEFA financial regulations.
The report concluded that the scheme enabled City to avoid recording what would otherwise have been the largest single-season loss in Premier League history during the 2009-10 campaign. Witnesses accused of giving false evidence were also identified by the commission. Several important club witnesses gave false evidence on key matters, with some allegedly providing testimony they knew to be untrue. Manchester City was further accused of submitting inaccurate financial accounts.
Premier League chief executive Richard Masters said the decision established how City "systematically broke Premier League Rules for nearly a decade". Masters described the disciplinary case and decision as the most significant in Premier League history. There are elements of the case that remain to be decided, including what sanction must follow for these breaches. The Premier League said City's punishment would be considered at a separate private hearing.
Manchester City said they were "disappointed and surprised" by the commission's findings and insisted that they remained innocent. The club described the commission's decision as containing "clear material errors of law, principle and fact" and said it would pursue every available appeal route. City chief executive Ferran Soriano later reportedly addressed club employees, criticising what he described as a Premier League "conspiracy theory".
Former Manchester City chairman David Bernstein said financial penalties would not be sufficient if the commission's findings survived an appeal. Bernstein told the BBC that if this all stands up and the appeal fails, Manchester City cannot stay in the Premier League. The case could now produce one of the most consequential punishments imposed in English football history. Manchester City was charged in February 2023 following an investigation.
The Premier League's decision on Manchester City's punishment will be made after the appeal process has progressed. Manchester City has until October 2 to lodge an appeal. Potential sanctions available include points deductions, substantial fines, and expulsion from the Premier League. The club's owners, the Abu Dhabi United Group, provided the majority of the funding.
Key points
- Manchester City found guilty of breaching financial rules
- Club arranged "sham" commercial contracts to disguise £830m in funding
- Potential sanctions include points deductions, substantial fines, and expulsion from the Premier League
