Manchester City found guilty in landmark Premier League financial case

15:35

Manchester City has been found guilty of serious breaches of the Premier League’s financial regulations following a lengthy investigation that has cast a spotlight on the club’s financial conduct over almost a decade.

An independent commission concluded that the club breached the league’s financial rules during the period covering the 2009/10 to 2017/18 seasons. The findings represent a major development in a case that has remained under scrutiny since the Premier League launched its investigation in December 2018.

According to the Premier League, the commission determined that Manchester City used commercial arrangements that did not accurately reflect the underlying agreements between the parties. The arrangements were found to have artificially increased reported revenues while reducing the costs recorded by the club.

Commercial arrangements at the centre of the case

The commission’s findings concern a series of sponsorship and other commercial agreements involving Manchester City and companies connected to its financial structure.

The Premier League said the arrangements formed part of a wider mechanism in which some sponsors paid only part of the stated sponsorship amounts, with the remaining funding coming from Abu Dhabi United Group Investment & Development Ltd, the club’s owner.

The commission concluded that similar arrangements were used to reduce reported operating expenses. It also identified an arrangement involving the sale of players’ image rights, which it found had been funded through the same ownership structure.

Taken together, the schemes were found to have affected the club’s reported revenues and costs by more than £900 million during the period examined. The commission concluded that the financial information submitted by Manchester City therefore did not present an accurate picture of its financial position.

Financial reporting and spending rules

The case also covers the information Manchester City provided to the Premier League and its auditors. The independent commission found that the club’s accounts contained material misstatements and that the true financial position had not been fully disclosed to the relevant authorities.

The findings have implications beyond the Premier League’s own regulations. The commission determined that, had the relevant commercial arrangements been reflected accurately in the accounts, Manchester City would have exceeded both the Premier League’s spending restrictions and UEFA’s financial limits by a substantial margin.

The case relates to rules that were in force during the period under investigation, including the Premier League’s financial requirements and UEFA’s Financial Fair Play framework.

Dispute over cooperation with investigators

The commission also upheld most of the allegations concerning Manchester City’s conduct during the Premier League’s investigation.

The league said three of four alleged breaches relating to cooperation and good-faith obligations were upheld. The commission concluded that the club had taken concerted steps that hindered the investigation.

The Premier League described the decision as establishing the facts surrounding the club’s conduct during the period and said the case was the most significant disciplinary matter in the competition’s history.

Sanctions still to be determined

Despite the commission having established the breaches, the consequences for Manchester City have not yet been decided.

The question of sanctions will be considered at a separate hearing before the independent commission. Under Premier League rules, the available measures can include financial penalties, points deductions and other sporting sanctions. The sanctions process will remain confidential until publication is permitted under the league’s rules.

Manchester City continues to dispute the findings and has the right to appeal the commission’s decision. The club has until 2 October 2026 to exercise that right, meaning the legal and disciplinary process is not yet complete.

The ruling therefore marks a significant milestone rather than the final chapter of the case. With the sanctions phase and any potential appeal still ahead, the consequences for Manchester City remain to be determined.