Manchester City have been found guilty of all charges relating to serious breaches of the Premier League’s financial rules over a nine-season period, in a landmark ruling that could now lead to significant sporting sanctions against the club.
An independent commission found City guilty of breaches between the 2009/10 and 2017/18 seasons, while also upholding the majority of charges relating to the club’s failure to cooperate with the Premier League’s four-year investigation.
The Premier League said the commission found that City had arranged “sham” contracts with several commercial partners, misrepresenting the true agreements between the parties. It said the arrangements were used to artificially inflate the club’s revenues and reduce its costs.
The commission also found that City had filed misstated accounts and concealed the true state of its finances from auditors and football regulators. It concluded that the club was significantly in breach of both Premier League and UEFA spending limits during the period under investigation.
HOW THE FUNDING WORKED
According to the Premier League, some of City’s commercial deals formed part of a disguised funding scheme involving Abu Dhabi United Group Investment & Development Ltd (ADUG), which owned the club.
The commission found that some sponsors were required to pay only part of the agreed sponsorship fees, with the remainder funded by ADUG. It also found further “sham” arrangements, funded by ADUG, that allowed City to record lower operating expenses than it actually incurred.
A separate arrangement involving Fordham, an entity that purchased players’ image rights, was also described as a “sham circular arrangement” funded by ADUG.
The Premier League said the purpose of these schemes was to artificially inflate City’s revenues and reduce its costs by more than 900 million British pounds during the affected period.
The consequence, according to the commission, was that City’s accounts did not accurately reflect its financial position. Had the relevant agreements been reported correctly, the club would have breached both the Premier League’s Profitability and Sustainability Rules and UEFA’s financial regulations by a “very substantial amount”.
The commission concluded that City had intended to circumvent Premier League rules.
INVESTIGATION COOPERATION
The ruling also covers City’s conduct during the Premier League’s investigation, which began in December 2018.
The league said the club committed multiple breaches of its duties of cooperation and utmost good faith. Three of the four alleged breaches were upheld by the commission.
According to the Premier League, the commission concluded that City had “made concerted efforts to stop and frustrate” the investigation.
Premier League chief executive Richard Masters described the ruling as a major moment for English football.
“The core decision establishes the facts of what happened at Manchester City during this period. It details how the club systematically broke Premier League Rules for nearly a decade,” Masters said.
He added that the decision “vindicates” the Premier League’s decision to pursue the case and said enforcing the rules was essential to maintaining a competitive and fair competition.
SANCTION STILL TO COME
Despite the findings, City have not yet been handed a punishment.
The Premier League said the issue of sanction will be addressed separately in a further hearing before the independent commission. Under the league’s rules, possible sanctions include fines, points deductions and other sporting penalties.
The sanction hearing will remain private and confidential until publication of the outcome is permitted.
Masters called the disciplinary case and decision “the most significant in Premier League history” and said the league was committed to moving swiftly through the remaining process.
City also have the right to appeal the commission’s findings and have until Friday, October 2, to exercise that right. Any appeal would be heard by an independent Appeal Board, which has the power to uphold, dismiss or vary the commission’s decision.
The original Premier League investigation began in December 2018, with a formal complaint issued in February 2023. The independent commission held a 42-day hearing that concluded in December 2024.
The Premier League said the delay in publishing the decision was partly due to the scale of the case. The commission had access to approximately 7,000 pages of witness and expert transcripts, alongside extensive written submissions from both parties.
For now, the commission’s findings establish the breaches, but the final sporting consequences remain unresolved.
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