The Premier League has found Manchester City guilty of breaching financial regulations, concluding that the club misrepresented its financial accounts and concealed the true state of its finances from auditors and football authorities. The league's independent commission determined that City disguised more than £830 million in funding through a series of inflated commercial deals between 2009 and 2018, a period during which the club secured seven major trophies.
The ruling asserts that of the £949.94 million City claimed to have generated, only £119.25 million was deemed legitimate, with the remainder attributed to undisclosed support from the club’s owners, Abu Dhabi United Group. The investigation characterized many of these arrangements as “sham” sponsorship deals, designed to circumvent Premier League spending rules. The verdict exposes City to potential sanctions including points deductions, transfer bans, or even relegation. The club has until the following day to file an appeal.
Central to the controversy is Etihad Airways, Manchester City’s principal sponsor, which entered a decade-long £400 million sponsorship agreement with the club in 2011. Although the airline was not directly named in the commission’s findings, the investigation implicated it as part of these inflated deals funded by City’s owners. Etihad Airways strongly rejected the allegations, stating it was not consulted or given an opportunity to refute any assertions during the investigation. The airline’s spokesperson criticized the Premier League for the way the findings were publicized, describing the communication as “selective” and “damaging” to Etihad’s reputation. Etihad confirmed its ongoing commitment to Manchester City and indicated it is exploring legal options to protect its interests.
The Premier League’s decision has attracted the attention of political and regulatory figures. Andy Burnham, the mayor of Greater Manchester and former Labour leader, expressed concern about the potential loss of investment from City’s owners, crediting them for significant development projects in east Manchester. At the same time, the Football Regulatory Authority reaffirmed its authority to assess the suitability of club owners and executives, signaling it may take action if warranted, while cautioning against premature conclusions as the matter remains subject to appeal.
Separately, the audit firm BDO, responsible for handling City’s financial accounts, faces scrutiny amid the fallout. The Financial Reporting Council is reportedly reviewing whether the firm breached standards, though no formal comment has been made. Supporters of BDO argue that the audit firm relied on information provided by City and highlight that revelations only emerged following disclosures from whistleblower Rui Pinto rather than the league’s internal compliance team.
Should Manchester City incur a points deduction sufficient to cause relegation, it would typically mean demotion to the Championship. However, in a more extreme scenario where the club is forced down to League Two, re-entry into the football league system would require approval from the Football Association, necessitating adjustments in promotions from lower divisions.
In a related development, Manchester United has declined to comment on the case, despite appointing Omar Berrada, a former Manchester City executive, as their chief executive in 2024. The appointment occurred nearly a year after the financial allegations against City became public.
The Premier League has been contacted for comment but has not provided a statement on the matter.