Key Highlights
- An independent commission found Manchester City guilty of all 115 charges concerning serious breaches of Premier League financial rules over nine seasons.
- The commission found that Manchester City used fictitious commercial and financial agreements to inflate revenue and reduce reported costs by more than £900 million.
- Sanctions will be considered at a separate private hearing, while Manchester City can appeal the findings by Friday, October 2.
Independent Commission Finds Manchester City Breached Financial Rules
An independent commission appointed by the Premier League has found Manchester City guilty of all 115 charges relating to serious breaches of the league’s financial regulations over a nine-season period. The commission also upheld most of the allegations that Manchester City failed to cooperate with the Premier League’s investigation.
The commission, which included legal, financial and other experts, concluded that Manchester City entered into fictitious commercial agreements with several sponsors. According to its findings, the arrangements formed part of a concealed financing structure in which the sponsors paid only a portion of the agreed fees, while the remaining sums were funded by Abu Dhabi United Group Investment & Development Ltd (ADUG), Manchester City’s owner.
The findings also covered additional fictitious agreements financed by ADUG that enabled Manchester City to report lower operating expenses than it had actually incurred. The commission identified a further fictitious circular agreement with Fordham, an entity that acquired the image rights of Manchester City players and was also financed by ADUG.
Findings on Revenue, Costs and Financial Reporting
The commission determined that the arrangements were designed to artificially increase Manchester City’s reported revenue and reduce its reported costs by more than £900 million during the period under review. The purpose, according to the findings, was to make the club appear compliant with financial regulations.
As a result, Manchester City was found to have submitted false accounts and concealed the true state of its finances from its auditors and football regulators. The commission concluded that, “through its conduct, the club clearly intended to evade Premier League rules”.
The commission said Manchester City did not accurately declare its income and expenditure under the Premier League’s Profitability and Sustainability Regulations or UEFA’s Club Licensing and Financial Fair Play Regulations. Had the relevant agreements been properly recorded, the club would have exceeded both the Premier League’s and UEFA’s spending limits by a considerable margin.
Manchester City Accused of Obstructing Investigation
The commission also examined Manchester City’s conduct during the Premier League investigation, which lasted four years. It found that the club repeatedly failed to meet its duties of cooperation and utmost good faith toward the league.
Three of the four alleged breaches of cooperation were confirmed. The commission concluded that Manchester City had made concerted efforts to stop and obstruct the Premier League’s investigation.
Sanctions and Appeal Process
The question of Manchester City’s punishment will be considered separately at a future hearing before the independent commission. Under Premier League rules, that hearing will be private and confidential until publication of the outcome is permitted.
Manchester City has the right to appeal the commission’s findings and has until Friday, October 2, to do so. The Premier League Board intends for the entire process, including any appeals and publication of the relevant decisions, to be completed as soon as possible.
Why This Matters
The findings concern the accuracy of Manchester City’s reported sponsorship income, operating costs and overall financial position under both Premier League and UEFA regulations. They also establish that the club’s cooperation with the league’s investigation will form part of the disciplinary process, alongside the underlying financial allegations.
No sanction has yet been announced. The eventual outcome will depend on the separate hearing and any appeal proceedings, meaning the case remains subject to further stages before the full process is concluded.
Frequently Asked Questions
How many charges did Manchester City face?
Manchester City faced 115 charges related to serious breaches of the Premier League’s financial rules over nine seasons. The independent commission found the club guilty on all 115 financial charges and upheld three of the four alleged breaches relating to cooperation with the investigation.
What did the commission say Manchester City’s financial arrangements involved?
The commission found that Manchester City used fictitious commercial and other agreements, with funding from Abu Dhabi United Group Investment & Development Ltd, to inflate reported revenue and reduce reported costs by more than £900 million.
When will Manchester City’s punishment be decided?
Sanctions will be addressed at a separate private hearing before the independent commission. Manchester City can appeal the findings by Friday, October 2, and the Premier League Board wants the process, including appeals and publication of decisions, completed as soon as possible.
