Manchester City have been found guilty of breaching the Premier League’s financial regulations over a nine-season period, following the conclusion of a landmark investigation by an independent commission.
The commission ruled that City committed serious breaches between the 2009/10 and 2017/18 seasons, including violations relating to the club’s financial reporting, commercial agreements and spending limits.
According to the commission’s findings, Manchester City used a number of commercial arrangements that were described as “sham” agreements, allegedly allowing the club to artificially inflate its revenues and reduce its reported costs.
The commission found that several sponsorship agreements were structured in a way that meant the relevant companies paid only part of the stated sponsorship fees, with the remaining amounts being funded by Abu Dhabi United Group Investment & Development Ltd (ADUG), the company that owned Manchester City.
The ruling also found that similar arrangements were used to reduce the club’s reported operating expenses, while another arrangement involving the sale of players’ image rights was also funded by ADUG.
The commission concluded that these schemes had the effect of artificially increasing Manchester City’s reported revenues and reducing its reported costs by more than £900 million during the period under investigation.
As a result, the club was found to have submitted inaccurate financial accounts and failed to present the true state of its finances to its auditors and football regulators.
The commission further ruled that, had the relevant agreements been accurately reflected in the club’s accounts, Manchester City would have breached both the Premier League’s Profitability and Sustainability Rules and UEFA’s financial regulations by a “very substantial amount.”
Failure to cooperate with investigation
The commission also found Manchester City guilty of three of four alleged breaches relating to its cooperation with the Premier League’s four-year investigation.
According to the ruling, the club breached its obligations of cooperation and utmost good faith, with the commission concluding that City had “made concerted efforts to stop and frustrate the PL investigation.”
Premier League Chief Executive Richard Masters described the ruling as a landmark moment for English football, saying the decision establishes the facts surrounding Manchester City’s conduct during the period in question.
“The core decision establishes the facts of what happened at Manchester City during this period. It details how the club systematically broke Premier League Rules for nearly a decade.”
Masters added that the case was among the most significant disciplinary proceedings in Premier League history, while stressing that the question of punishment has yet to be determined.
What happens next?
Despite the commission finding Manchester City guilty of the charges, no sporting sanction has yet been announced.
The question of punishment will be considered separately at a further hearing before the independent commission. Under Premier League rules, that hearing will remain private until the outcome can be legally published.
Manchester City also have the right to appeal the commission’s findings. The club has until Friday, 2 October to exercise that right.
The Premier League says it intends to complete the remaining process, including any appeals and the publication of relevant decisions, as soon as possible.
The commission’s redacted Core Decision has now been published, with additional appendices expected to be released when permitted.
For Manchester City, however, the immediate issue is no longer whether the alleged financial breaches occurred — the independent commission has ruled that they did. The next major question is what consequences, if any, will follow from those findings.