Manchester City have been found guilty of serious breaches of the Premier League’s financial rules over nine seasons, following one of the most significant investigations in the competition’s history.
The club was found guilty of all charges linked to the financial breaches and three of four charges related to failing to cooperate with the investigation, the Premier League said on Tuesday.
City were originally charged in February 2023 after a four-year investigation into alleged breaches between the 2009-10 and 2017-18 seasons.
An independent commission found that the club used “sham” contracts that did not reflect the true nature of agreements with several commercial partners. Similar arrangements were also used with other sponsors to increase reported revenue and reduce costs.
According to the Premier League, several sponsors paid only part of the fees recorded in official agreements, while the remaining amounts were provided by Manchester City’s owners, Abu Dhabi United Group Investment & Development Ltd (ADUG).
The commission also identified arrangements funded by ADUG that allowed the club to report lower operating expenses.
The schemes reportedly increased City’s revenue and reduced its costs by more than £900 million, or around $1.2 billion, creating the appearance that the club was complying with financial regulations.
The commission said Manchester City would have breached both Premier League and UEFA spending limits “by a very substantial amount” if the agreements had been reported accurately.
It also found that a number of club witnesses gave false evidence during the 42-day hearing, while some knowingly misled the commission.
Premier League Chief Executive Richard Masters described the case as “the most significant in Premier League history” and said the ruling showed that the club had systematically broken league rules for nearly a decade.
However, the final sanction has not yet been decided.
Masters said the league would move quickly through the remaining stages of the process to provide clarity for clubs, supporters and the competition.
Manchester City have strongly rejected the findings and said they will appeal the decision.
The club said it was disappointed and surprised by the commission’s opinion and maintained that it was innocent of the accusations.
City said a comprehensive body of evidence supported its position and argued that the ruling contained clear material errors of law, principle and fact.
The club has until October 2 to file its appeal.
The ruling was announced near the end of the European Football Clubs general assembly in Copenhagen, where representatives of English clubs were seen checking their phones during the closing minutes.
Representatives of Arsenal, Nottingham Forest and Manchester United declined to comment.
EFC Chairman Nasser Al-Khelaifi also avoided giving a judgment on the case and instead praised Manchester City CEO Ferran Soriano for his work as an EFC board member.
He said Soriano had gained significant knowledge throughout his career and had also done many positive things.
British Sports Minister Lisa Nandy described the Premier League’s report as “incredibly stark” and called for the case to be concluded quickly and fairly.
Speaking to the BBC, she said the matter was causing concern not only among Manchester City supporters but also across the wider Premier League fanbase.
She added that the Premier League was one of Britain’s “crown jewels” and said a swift and fair conclusion was necessary to protect the integrity of the game.
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