Manchester City have been found guilty of all charges related to serious breaches of the Premier League's financial rules, the league announced on Tuesday. An independent commission determined that the English club arranged "sham contracts" with commercial partners to artificially inflate revenues and reduce costs between the 2009-10 and 2017-18 seasons.
The Premier League said the club engaged in a "disguised funding scheme" whereby sponsors were required to pay only part of their agreed fees, with the remainder funded by Abu Dhabi United Group Investment & Development Ltd (ADUG), which owned the club. The commission also identified further "sham arrangements" funded by ADUG that allowed City to record lower operating expenses.
According to the league, these schemes inflated City's revenues and reduced costs by more than £900 million (approximately €1.05 billion) over the period. Had the agreements been reported accurately, the commission found, the club "would have been in breach of both the League's and UEFA's spending limits by a very substantial amount."
City denies wrongdoing and vows to appeal
Manchester City have consistently denied any wrongdoing. In a statement issued later on Tuesday, the club said it was "disappointed and surprised" by the league's announcement. City has until 2 October to lodge an appeal, which it has indicated it will do.
The club added that it is "innocent of the accusations made by the Premier League" and that a "comprehensive body of irrefutable evidence exists in support of all of its positions, relating to this case."
The Premier League's chief executive, Richard Masters, described the case and the decision as "the most significant in Premier League history," though he noted that certain elements, including sanctions, remain unresolved. "The core decision establishes the facts of what happened at Manchester City during this period," Masters said. "It details how the club systematically broke Premier League Rules for nearly a decade."
The league also found City guilty on the majority of charges relating to its failure to cooperate with the investigation. The Premier League launched its inquiry into City's finances in late 2018, with formal charges filed in 2023.
The ruling raises broader questions about financial regulation in European football. The case echoes concerns about the effectiveness of spending limits and the challenges of enforcing them across different jurisdictions. As European football governance continues to evolve, the outcome of any appeal could set a precedent for how clubs are held accountable under financial fair play frameworks.
Manchester City now face an uncertain period as they prepare their appeal. The club's legal team is expected to challenge the commission's findings, potentially arguing procedural issues or disputing the interpretation of the rules. The appeal process could take months, and any sanctions—ranging from fines to points deductions or even expulsion from the league—will be determined at a later stage.
For now, the Premier League's announcement marks a pivotal moment in its efforts to enforce financial regulations. The case underscores the tension between ambitious club ownership and the collective interest in maintaining competitive balance. As the appeal unfolds, stakeholders across European football will be watching closely.
