Key Takeaways
- Manchester City has been found guilty of serious financial breaches over a nine-season period.
- The club inflated revenues and reduced costs by over 900 million pounds, avoiding financial limits.
- No sanctions have been imposed yet, but the club is set to appeal.
Manchester City has been found guilty of serious financial breaches over a nine-season period, according to a ruling by the Premier League. The club, backed by Abu Dhabi’s Sheikh Mansour bin Zayed al-Nahyan, was found to have arranged 'sham' contracts with commercial partners to artificially inflate its revenues and reduce costs by more than 900 million pounds ($1.2 billion) between 2009 and 2018.
The independent commission also found the club guilty on the majority of charges related to their failure to co-operate with the league’s investigation. The ruling, described as the most significant in Premier League history, could send shockwaves through English football, with City’s place in the Premier League now at risk.
The commission’s decision detailed how City systematically broke Premier League rules for nearly a decade, arranging commercial deals where companies were only required to pay a portion of the relevant sponsorship fees. The remainder was funded by ADUG, which owned the club. Further arrangements enabled the club to record lower operating expenses than they actually incurred, leading to an inaccurate reporting of income and expenditure.
As a result, City failed to accurately report income and expenditure for the purposes of the Premier League and UEFA’s financial sustainability rules. The scheme inflated revenue by more than 830 million pounds, while income from image rights was overstated by almost 74 million pounds, with liabilities for staff contracts under-stated by nearly 17 million pounds. The commission found that if City had reported accurately, they would have breached spending limits 'by a very substantial amount.'
Manchester City’s vice-president and deputy chairman, Khaldoon Al Mubarak, stated in a letter to fans that the club’s confidence in proving its innocence remains strong. 'Our confidence and intent in proving the club’s innocence is just as strong as when this began,' he said.
The club is set to appeal against the decision, and no sanctions have been imposed yet. However, the ruling could have significant implications, including the potential stripping of some of City’s titles and trophies won over the past 15 years. The club’s place in the Premier League is now at risk, and rival clubs are expected to launch their own legal actions seeking compensation.
Premier League chief executive Richard Masters said, '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.' He added, 'Now we have the commission’s decision, we are committed to moving swiftly through the remainder of the process, to provide certainty for the league, our clubs and fans.'
Our confidence and intent in proving the club’s innocence is just as strong as when this began.
Khaldoon Al Mubarak, Manchester City’s vice-president and deputy chairman
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.
Richard Masters, Premier League chief executive
