Manchester City found guilty of serious breaches of Premier League financial rules
An independent commission has found English football club Manchester City guilty on all charges relating to serious breaches of English Premier League financial rules over nine seasons - from 2009/10 to 2017/18. The club's punishment will be determined later at a separate hearing.
The Premier League reported that the commission found that Manchester City entered into fictitious agreements with a number of commercial partners, which allowed artificially inflating the club's income and understating its expenses.
According to the commission's findings, these schemes distorted Manchester City's income and expenditure figures by more than £900 million. Part of the funds that were presented as sponsorship income in the statements were actually financed by Abu Dhabi United Group Investment & Development Ltd - the structure that owned the club.
The commission also established that the club submitted unreliable financial statements and concealed the real state of its finances from auditors and football regulators. If all operations had been properly reflected, Man City would have significantly exceeded spending limits set by both the Premier League and UEFA.
Separate violations related to payments associated with image rights of footballers, as well as other arrangements that allowed reducing the club's expenses reflected in official statements. The commission concluded that Manchester City intended to circumvent Premier League rules by its actions.
In addition to direct financial breaches, the commission confirmed three of the four charges regarding Manchester City's improper cooperation with the Premier League investigation. The decision notes that the club made concerted attempts to obstruct and complicate the investigation.
The Premier League brought a large package of charges against Manchester City back in February 2023 after a multi-year investigation. The case was referred to an independent commission, which considered the club's financial operations, compliance with profitability and sustainability rules, UEFA requirements, and the club's conduct during the investigation itself.
The specific punishment has not yet been determined. After establishing the violations, the independent commission will hold a separate closed hearing on sanctions. Premier League rules provide for various types of punishment, including fines, points deductions, and other sporting sanctions.
Manchester City disagreed with the decision. The club's statement says it considers itself innocent, and the commission's conclusion allegedly contains significant errors in law, facts, and principles of the case.
The club said it will use the available appeal procedures. According to the Premier League, Manchester City has until October 2 to appeal the commission's findings. Therefore, the final outcome of the case, including possible sanctions, has not yet been determined.
Based on materials from: Premier League, Manchester City
