Manchester City has been found guilty of serious breaches of the Premier League's financial rules over a nine-season period. An independent commission concluded that the club used "sham" contracts to artificially increase its reported revenue and reduce its reported costs. The breaches occurred between the 2009/10 and 2017/18 seasons.
The commission found that Manchester City submitted accounts that did not accurately reflect the club's financial position and concealed the true state of its finances from its auditors and football regulators. The club's commercial agreements with sponsors and Abu Dhabi United Group Investment & Development Ltd were scrutinized, with some sponsors paying only part of the relevant sponsorship fees.
The commission also found that additional arrangements funded by Abu Dhabi United Group Investment & Development Ltd allowed Manchester City to record lower operating expenses than it had actually incurred. A separate arrangement involving Fordham, an entity that purchased the image rights of Manchester City players, was also found to have been funded by Abu Dhabi United Group Investment & Development Ltd.
The commission concluded that these arrangements artificially increased the club's reported revenues and reduced its reported costs by more than £900 million during the period in question. As a result, Manchester City's accounts did not accurately represent its income and expenditure for the purposes of the Premier League's Profitability and Sustainability Rules and UEFA's Club Licensing and Financial Fair Play regulations.
The commission also found that Manchester City breached its obligations to cooperate with the Premier League during the league's four-year investigation. Three of the four alleged breaches relating to cooperation were upheld, with the commission concluding that the club had made concerted efforts to prevent or frustrate the Premier League's investigation.
Premier League chief executive Richard Masters said the decision establishes the facts surrounding Manchester City's conduct during the period under investigation. He added that enforcing the Premier League's rules was essential to maintaining the integrity and competitive nature of the competition.
The punishment for the breaches will be considered separately at a further hearing before the independent commission. Manchester City also has the right to appeal the commission's findings and has until Friday, October 2, to exercise that right. The Premier League said its intention is for the remaining process, including any appeals and publication of relevant decisions, to be completed as soon as possible.
Key points
- Manchester City found guilty of serious financial rule breaches
- Club used "sham" contracts to artificially increase revenue
- Punishment for breaches to be considered separately
