Manchester City, owned by the Abu Dhabi United Group Investment and Development, has been found guilty of serious breaches of the Premier League's financial rules over a nine-season period between 2009 and 2018. The Premier League confirmed on Tuesday that the club had arranged "sham" contracts with commercial partners to artificially inflate revenues and reduce costs by more than £900m. This allowed City to conceal the true state of their finances and avoid breaches of Premier League and Uefa spending limits.
An independent commission found City guilty on the majority of charges in relation to their failure to co-operate with the league's investigation. The commission discovered that City arranged commercial deals whereby companies were only required to pay a portion of the relevant sponsorship fees, with the remainder funded by Sheikh Mansour bin Zayed al-Nahyan's Abu Dhabi United Group Investment and Development. This scheme inflated revenue by more than £830m, while income from image rights was over-stated by almost £74m.
The commission's findings also revealed that City's liabilities for staff contracts were under-stated by nearly £17m. As a result, City failed to accurately report income and expenditure for the Premier League and Uefa's financial sustainability rules. The club would have breached spending limits "by a very substantial amount" if they had reported accurately. Premier League chief executive Richard Masters stated that the disciplinary case and decision are the most significant in Premier League history.
Manchester City face severe sanctions, including possible relegation, points deductions, or fines, although no sanction has yet been imposed. The club expressed "surprise" at the decision and vowed to continue fighting to clear their name. City's former chair, David Bernstein, stated that if the appeal fails, Manchester City cannot stay in the league and must suffer the consequences.
The Premier League's ruling will send shockwaves through English football, 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 "incredibly serious". City have become the Premier League's dominant force since a 2008 takeover by United Arab Emirates vice-president and deputy prime minister Sheikh Mansour.
Since the takeover, City have won eight Premier League titles, four FA Cups, and seven League Cups over the past 15 years, including the Champions League for the first time in 2023. However, that same year they were hit by the Premier League with more than 100 charges following an investigation into alleged breaches of rules. The hearing by an independent commission started in September 2024 and concluded three months later.
According to Premier League rules, the sanction can vary from points deductions to expulsion from the division. Everton and Nottingham Forest were handed points deductions in the 2023/24 season for single breaches of financial sustainability rules. City will now pursue the appeal avenues open to it, on the basis that the opinion contains clear material errors of law, principle, and fact, and is unsafe.
Key points
- Manchester City face severe sanctions after being found guilty of serious breaches of the Premier League's financial rules over a nine-season period.
- The club's place in the Premier League is now at risk and questions have been raised over whether titles could be stripped.
- City will now pursue the appeal avenues open to it, on the basis that the opinion contains clear material errors of law, principle, and fact, and is unsafe.
