Manchester City has been found guilty of most of the charges brought by the Premier League regarding its financial practices between 2009 and 2018. An independent commission found City guilty of every charge concerning serious breaches of the league’s financial rules across the 2009-10 through 2017-18 seasons. The club was also found guilty of three of four charges concerning its failure to cooperate with the investigation.
The investigation found that the club used sham sponsorship agreements to disguise funding from its owner as commercial revenue. According to Reuters the schemes inflated revenue and reduced costs by more than £900 million over nearly a decade. The commission said this created the appearance that City was complying with financial regulations when its true finances would have put it in substantial breach of Premier League and UEFA spending limits.
The Guardian reported that City recorded £949.94 million in sponsorship revenue from Abu Dhabi companies during the nine seasons under investigation while the commission determined £830.69 million of that amount came through what it called tagged sums funded by Abu Dhabi United Group.
The commission also found that City used arrangements that lowered costs recorded in its accounts. Other findings involved payments to former employees and a player image-rights arrangement that the commission regarded as another sham. City has denied all accusations and says that the report contains significant legal and factual errors.
A number of witnesses appearing on City’s behalf were found to have provided false evidence during the hearing. The commission said some witnesses knew portions of their testimony were untrue. It also found that the club had made concerted efforts to stop and frustrate the Premier League investigation.
Only one charge was dismissed but it concerned one part of City’s obligation to act in utmost good faith rather than its cooperation with the investigation.
City chief executive Ferran Soriano rejected the findings in a message to employees and described the Premier League’s case as a conspiracy theory. Manchester City said it was disappointed and surprised by the commission’s opinion. The club said it will pursue the available appeal process because it believes the ruling contains serious errors of law and fact.
No punishment has been imposed yet. Premier League chief executive Richard Masters described the decision as the most significant in the league’s history while stressing that the sanction remains unresolved. City has until Friday to lodge its appeal.
The full consequences of the verdict are still unknown. Possible sanctions under Premier League rules could include a fine or points deduction with more severe measures also being discussed publicly. The commission must still decide what punishment should be imposed.
Manchester fans have long celebrated the club’s success under Abu Dhabi ownership since 2008.
City won several Premier League titles and other major trophies during and after the period covered by the charges. The ruling does not itself remove any of those titles and no decision has been announced on whether past honors could be affected. Any final consequences may also depend on the outcome of City’s appeal.
The investigation has raised serious questions about transparency and integrity in the sport. The case now enters another stage as Manchester City attempts to overturn the findings and the Premier League considers what sanction should follow.