Manchester City: the Premier League finds that the club inflated its revenue by 900 million. The club announces it will appeal
The fate of the titles won during the period in question hangs in the balance, given the claims for compensation that the affected clubs might bring
3' min read
3' min read
Nine seasons of falsified accounts totalling over 900 million pounds. The Premier League has published the findings of the independent commission tasked with investigating Manchester City, which has been found guilty of all charges relating to serious breaches of financial regulations between the 2009/10 and 2017/18 seasons.
A covert funding scheme
The scheme uncovered by the tribunal involves a covert financing arrangement. The ‘Citizens’ are alleged to have entered into so-called fictitious contracts with various commercial partners, which misrepresented the actual agreement between the parties: the sponsors paid only a portion of the sums stated, whilst the remainder was financed by Abu Dhabi United Group Investment & Development, the owning company. This scheme also included further agreements, again backed by ADUG, which allowed operating costs to be recorded as lower than they actually were, and a circular agreement with Fordham, the entity that had purchased the players’ image rights.
The overall manipulation – quantified by the commission at over 900 million pounds in inflated revenues and underreported costs – was intended to make the club appear to be in compliance with spending limits. This resulted in the filing of false financial statements, which concealed the club’s true financial position from auditors and regulators. The panel concludes that, through its conduct, the club clearly intended to circumvent the regulations.
The second irregularity concerns the conduct of the investigation itself, which began in December 2018 and culminated in the referral in February 2023: according to the commission, Manchester City made ‘concerted efforts’ to halt and obstruct it. The ensuing proceedings involved 42 days of hearings, whilst it took twenty-one months to reach a decision – a delay for which the panel apologises in its notes.
City’s reaction
City said it was disappointed and surprised by what it describes as the committee’s opinion: it reiterated its innocence and stated that it possesses comprehensive and, in its view, irrefutable evidence. According to the club, the document contains errors of law, principle and fact, and is unreliable. The harshest criticism is directed at the league: the club states that it has scrupulously complied with the procedure for eight years, trusting that the Premier League’s leadership would act as an independent, impartial and fair regulator. The club has announced that it will pursue all available avenues of appeal: the deadline expires on Friday 2 October.
Any penalty will be discussed at a closed-door hearing before the same committee. The regulations give the committee a free hand regarding the sanction: they mention fines, points deductions and other sporting sanctions, whilst specifying, however, that the list is not exhaustive and that the committee may decide on other measures. There are no precedents for an event of this magnitude: recent cases include the ten-point deduction imposed on Everton in November 2023, which was subsequently reduced on appeal, and the four-point deduction imposed on Nottingham Forest in March 2024, both for isolated breaches in a single financial year. Equally broad powers are vested in the Appeal Board, which, in the event of an appeal, may uphold the decision, overturn it or amend it.
