Manchester City has been found guilty of all charges related to breaches of Premier League financial rules spanning the 2009-10 to 2017-18 seasons, with the League alleging the club orchestrated "sham contracts" as part of a scheme to disguise over £830 million in secret funding. An independent commission, in a redacted report published by the Premier League, detailed how the club allegedly manipulated commercial agreements to artificially inflate revenues and reduce costs, a practice described as a "disguised funding scheme." The club vehemently denies any wrongdoing and has until October 2nd to lodge an appeal.
The gravity of the findings, which emerged following reports last week that City had been found guilty of the majority of the 115 charges, was underscored by the Premier League’s publication of the commission’s report. The report details a systematic pattern of rule-breaking over nearly a decade, involving "well over 100 alleged individual breaches of Premier League Rules across four broad charge categories." Crucially, the commission found the club guilty of all charges except one pertaining to non-cooperation with the investigation. Furthermore, the report noted that "a number of important Club witnesses gave false evidence in key respects and that some knowingly gave untrue and dishonest evidence."
The Alleged "Sham Contracts" Scheme
At the heart of the Premier League’s case are the alleged "sham contracts" with commercial partners. The commission’s report asserts that these agreements were designed to misrepresent the true financial state of the club, channeling funds from its owners, the Abu Dhabi United Group (ADUG), in a manner that circumvented financial regulations. The scale of this alleged disguised funding scheme is staggering, estimated at £830.69 million.
The report highlights specific instances, noting that during the three Premier League title-winning seasons of 2011-12, 2013-14, and 2017-18, Manchester City recorded £360 million in sponsor fees. However, the commission determined that only £43 million of this amount was legitimate, with the remainder allegedly originating from ADUG and being deliberately disguised. The commission concluded that "The relevant sponsorship agreements were found to be shams, or at minimum did not reflect their economic substance."
This alleged scheme is further described as demonstrating "deliberate or reckless conduct intended to circumvent the Premier League rules." The commission’s findings suggest that the "sham" scheme devised by Manchester City allowed the club "to avoid recording what would otherwise have been the largest single-season loss in Premier League history in 2009-10." The sheer volume of evidence considered by the commission was immense, with an index alone running to over 750 pages and the core bundle of documents extending to "many tens of thousands of pages."
Premier League’s Stance and Future Proceedings
Richard Masters, Chief Executive of the Premier League, emphasized the significance of the commission’s decision. "The core decision establishes the facts of what happened at Manchester City during this period," Masters stated. "It details how the club systematically broke Premier League Rules for nearly a decade. It also vindicates the Premier League’s decision to pursue this case against Manchester City. While the process to date has been both long and difficult, the League has remained determined that the facts be established independently."
Masters reiterated the Premier League’s commitment to upholding the integrity of the competition. "It is a key responsibility of the Premier League to ensure that the Rules, approved by the clubs themselves, are upheld to protect the integrity of the competition. It is paramount that the League remains competitive and fair for all clubs and for the fans. We take that role extremely seriously."
The Premier League has confirmed that any sanction for Manchester City "will be addressed separately in a further hearing with the independent commission." The rules stipulate that this hearing will remain private and confidential.
Reactions and Broader Implications
The findings have generated significant concern and commentary from various stakeholders. Lisa Nandy MP, Secretary of State for Culture, Media & Sport, described the Premier League report as "incredibly stark" and noted that it is "causing a lot of concern for Man City fans and all fans of Premier League football."
David Bernstein, former chairman of Manchester City between 1998 and 2003, expressed grave concerns about the credibility of the Premier League itself. "The credibility of the Premier League is at stake," Bernstein stated, calling the findings "damning beyond belief." He highlighted the alleged production of false documentation and a sustained pattern of behavior over years, describing it as "quite unbelievable." Bernstein also raised the possibility of referring some issues to authorities outside the league, suggesting that financial sanctions alone might be insufficient given the financial capacity of ADUG. He controversially stated, "If this all stands up and the appeal fails, Manchester City cannot stay in the Premier League, they have to suffer a serious penalty that takes them out of the Premier League and I say that as a supporter and fan of 70 years."
Manchester City’s Defence and Appeal
In response to the commission’s findings, Manchester City FC released a statement expressing disappointment and surprise. The club asserted its innocence, claiming "The Club is innocent of the accusations made by the Premier League and a comprehensive body of irrefutable evidence exists in support of all of its positions, relating to this case." Manchester City declared its intention to be "relentless, and where necessary proactive, in any and all appropriate regulatory and legal forums."
The club further stated that "The Premier League process remains ongoing, with significant elements uncompleted. Manchester City FC will now pursue the appeal avenues open to it, on the basis that the opinion contains clear material errors, of law, principle and fact, and is unsafe." They also criticized the Premier League’s process, stating they had "diligently respected due process for eight years on the basis that the Premier League Board and Executive would behave as an independent, impartial and fair-minded regulator, free from partisan influence."
Manchester City CEO Ferran Soriano, who declined to comment directly to the BBC, later issued a video message to club staff. In it, Soriano reportedly criticized what he termed a "Premier League conspiracy theory" and expressed confidence that the club would be "vindicated."
A Lengthy and Complex Investigation: A Chronology
The current findings are the culmination of a lengthy and often contentious investigation that has unfolded over several years:
- November 2018: Allegations first surfaced through Football Leaks, with Der Spiegel publishing claims that Manchester City had breached financial fair play rules.
- March 2019: UEFA initiated a formal investigation based on these findings.
- May 2019: Manchester City criticized the investigation and began an appeal process.
- November 2019: The Court of Arbitration for Sport (CAS) deemed City’s appeal inadmissible.
- February 2020: UEFA imposed a two-year ban from European competitions and a £30 million fine on the club.
- July 2020: Manchester City’s European ban was overturned by CAS.
- July 2021: City lost a jurisdiction ruling, allowing the media to report that the Premier League was continuing its own investigation into alleged financial breaches.
- April 2022: Der Spiegel published a fresh report, claiming the Premier League had been investigating the club for three years and providing further detailed accusations.
- February 2023: The Premier League officially charged Manchester City with 115 financial breaches.
- September 2024: A 10-week hearing commenced between the Premier League and Manchester City regarding the 115 charges.
- February 2025: Manchester City manager Pep Guardiola indicated the club expected a verdict "within one month." (Guardiola has since left the Etihad at the end of the last season).
- September 25, 2026: Reports emerged indicating a verdict had been reached, with sources suggesting City had been found guilty of the majority of the charges.
- September 29, 2026: The Premier League released its findings via an independent commission, confirming the guilty verdicts.
The ramifications of these verdicts are significant and far-reaching, impacting not only Manchester City but also the broader landscape of Premier League competition and financial regulation in football. The upcoming appeal process will be closely watched as the sport grapples with the complex issues of financial integrity and fair play.
