Manchester City has been found guilty of breaching Premier League financial rules through a series of "sham" contracts and disguised funding schemes, the Premier League announced on Tuesday following an independent commission’s verdict. The panel found the club guilty of nearly all charges related to financial misconduct spanning nine seasons between 2009 and 2018, a period during which City emerged as a dominant force in English football, winning multiple Premier League titles and the UEFA Champions League.
The investigation revealed that the club artificially inflated its sponsorship revenue and understated its expenses by more than £900 million ($1.19 billion) to appear compliant with both Premier League and UEFA financial regulations. Central to the case was the use of “sham” commercial deals where Abu Dhabi-based sponsors reportedly paid only a fraction of agreed fees, with the remaining sums covertly funded by the club’s owner, Abu Dhabi United Group Investment & Development Ltd (ADUG), controlled by Sheikh Mansour bin Zayed al-Nahyan. This “Disguised Funding Scheme” allowed City to present inflated income figures and reduce operating costs, thus circumventing spending limits.
The commission’s report stated that the club filed inaccurate financial accounts and deliberately concealed the true state of its finances from auditors and football regulators. It also found that City made multiple attempts to obstruct the Premier League’s investigation and failed to cooperate fully throughout the process. Some witnesses called by the club were accused of providing false testimony, further undermining the club’s defense.
Premier League chief executive Richard Masters described the ruling as “the most significant in Premier League history,” emphasizing that City “systematically broke Premier League rules for nearly a decade.” The commission’s findings suggest that the club knowingly sought to circumvent financial fair play regulations to maintain a competitive advantage.
The club has repeatedly denied the allegations. In a statement and accompanying video message to staff, chief executive Ferran Soriano rejected the verdict, describing it as based on a “Premier League conspiracy theory.” Soriano maintained that comprehensive evidence, including bank statements and witness testimonies, was provided to demonstrate that owner funds were not funneled into the club via sponsorship arrangements. City has expressed disappointment and surprise at the ruling and confirmed its intention to appeal by the Premier League’s Friday deadline. The club also indicated it will pursue all available regulatory and legal avenues to challenge the decision.
The Premier League will hold a separate sanctions hearing to determine the disciplinary measures to be imposed, which could include substantial fines, points deductions, transfer bans, or even expulsion from the league. The timing of this hearing remains unspecified.
Reactions across football have been swift and stark. Rival clubs and commentators have described the breaches as unprecedented in their scale and severity. Some have called for severe punishments to uphold the integrity and competitiveness of English football. Government officials have also highlighted the seriousness of the findings while noting the importance of due process.
For Manchester City and its supporters, the ruling marks a profound moment of reckoning. The club’s numerous achievements during the period under review are now subject to scrutiny, and questions remain regarding the future of key figures in management and playing staff. While many fans have pledged loyalty, the decision casts a long shadow over one of the most successful eras in English football history.
As the appeals process unfolds, the full consequences of the verdict will become clearer, with wide-ranging implications for Manchester City, the Premier League, and the broader football community.