The Premier League has confirmed that Manchester City has been found guilty of serious breaches of the league's financial rules over a nine-season period between 2009 and 2018. An independent commission found that City arranged sham contracts with commercial partners to artificially inflate the club's revenues and reduce costs, concealing the true state of their finances and avoiding breaches of Premier League and UEFA spending limits.
The commission's findings revealed that City arranged commercial deals whereby companies were only required to pay a portion of the relevant sponsorship fees, with the remainder funded by Abu Dhabi United Group Investment and Development (ADUG), which owned the club. These schemes artificially inflated the club's revenues and reduced its costs by more than £900 million ($1.2 billion) during the affected period, allowing City to appear to comply with financial rules.
As a result of the breaches, City failed to accurately report income and expenditure for the purposes of the Premier League and UEFA's financial sustainability rules. The commission found that the club would have breached spending limits "by a very substantial amount" if they had reported accurately. The club was also found to have made concerted efforts to stop and frustrate the Premier League during a four-year investigation.
Premier League chief executive Richard Masters stated that the core decision establishes the facts of what happened at Manchester City during this period, detailing how the club systematically broke Premier League rules for nearly a decade. Masters emphasized that the 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 expressed "surprise" at the decision and vowed to continue fighting to clear their name, stating that they will pursue the appeal avenues open to them. The club's chairman has asserted their innocence, stating that they are still a "long way to run" in the process. According to Premier League rules, the sanction can vary from a points deduction, a fine, or even expulsion from the division.
The implications of the ruling are significant, with City's place in the Premier League now at risk and questions over whether titles could be stripped. The British government's culture, media, and sport secretary, Lisa Nandy, described the Premier League report as "incredibly stark" and emphasized the seriousness of the breaches. Everton and Nottingham Forest were handed points deductions in the 2023/24 season for single breaches of financial sustainability rules.
Since a 2008 takeover from Sheikh Mansour bin Zayed al-Nahyan, Manchester City has become the Premier League's dominant force, winning eight Premier League titles, four FA Cups, and seven League Cups over the past 15 years, as well as winning the Champions League for the first time in 2023. However, that same year, they were charged by the Premier League on over 100 charges following an investigation into alleged breaches of rules.
Key points
- Manchester City found guilty of serious breaches of Premier League financial rules
- Club arranged sham contracts to artificially inflate revenues and reduce costs
- Sanctions could include points deduction, fine, or expulsion from the division
