Manchester City in Crisis as Premier League Finds Club Guilty in £830m Financial Scandal

Manchester City in Crisis as Premier League Finds Club Guilty in £830m Financial Scandal

Manchester City have been found guilty of 114 financial-rule breaches by an independent Premier League commission, in a verdict that could have major implications for the English champions.

The Premier League on Tuesday, September 29, published a redacted version of the commission’s findings after years of investigation and legal proceedings surrounding Manchester City’s finances between the 2009-10 and 2017-18 seasons.

The commission found the club guilty of all but one of the charges brought against it, with the exception relating to alleged non-cooperation with the Premier League’s investigation.

At the centre of the findings are allegations that Manchester City used commercial arrangements that did not accurately reflect the underlying financial transactions, allowing the club to present a stronger financial position than it would otherwise have recorded.

The commission described a number of sponsorship agreements as “shams” or arrangements that, at the very least, failed to reflect their true economic substance.

According to the findings, the arrangements formed part of what the commission described as a “disguised funding scheme” worth about £830.69 million.

Millions in sponsorship revenue questioned

The commission’s findings also examined sponsorship income recorded by Manchester City during three seasons in which the club won the Premier League title — 2011-12, 2013-14 and 2017-18.

City recorded approximately £360 million in sponsorship fees during those seasons. However, the commission reportedly concluded that only about £43 million represented legitimate sponsorship revenue, with the remainder allegedly originating from the club's owners and being presented through commercial arrangements.

The commission said the arrangements artificially increased the club's reported revenues while reducing its costs.

It further concluded that the conduct enabled City to avoid recording what could otherwise have been the largest single-season loss in Premier League history during the 2009-10 campaign.

The report characterised the conduct as deliberate or reckless and said it was intended to circumvent Premier League financial regulations.

Commission raises concerns over evidence

Beyond the financial arrangements, the commission also criticised aspects of the evidence presented during the investigation.

It said several important witnesses connected to Manchester City provided evidence that was false in significant respects, with some witnesses allegedly giving evidence that was knowingly untrue and dishonest.

The scale of the proceedings was substantial. The commission noted that the index to the evidence alone ran to more than 750 pages, while the principal bundle contained tens of thousands of pages of documents.

The Premier League's chief executive, Richard Masters, said the decision established the facts surrounding Manchester City's conduct during the period under investigation.

“The core decision establishes the facts of what happened at Manchester City during this period,” Masters said, adding that the findings detailed what he described as systematic breaches of Premier League rules over nearly a decade.

He said the case demonstrated the importance of enforcing financial regulations designed to protect the integrity and competitiveness of the competition.

City reject verdict and prepare appeal

Manchester City has strongly rejected the commission's findings.

In a statement, the club described itself as “disappointed and surprised” by the decision and maintained that it was innocent of the accusations.

City said it possesses what it described as a comprehensive body of evidence supporting its position and accused the commission's opinion of containing “clear material errors, of law, principle and fact.”

The club said it would pursue the available appeal and legal avenues and indicated that it would continue challenging the findings.

The club's chief executive, Ferran Soriano, also criticised what he described as a “Premier League conspiracy theory” in a message to staff and maintained that City would ultimately be vindicated.

What happens next?

Despite the scale of the verdict, Manchester City's punishment has not yet been determined.

The Premier League confirmed that sanctions will be considered at a separate hearing before the independent commission. The details of that hearing will remain private under the league's rules.

City has until 2 October 2026 to submit its appeal.

The case dates back to allegations that emerged publicly in 2018 following reports based on Football Leaks material. UEFA subsequently investigated City, imposing a two-year European competition ban and a €30 million fine in February 2020. The Court of Arbitration for Sport later overturned the European ban on appeal.

The Premier League eventually charged Manchester City with 115 alleged financial breaches in February 2023, leading to a landmark hearing that began in September 2024.

After years of investigation, legal challenges and hearings, the publication of the commission's findings marks one of the most consequential stages yet in the long-running dispute.

For now, however, the final sporting and financial consequences remain unresolved as Manchester City prepares to challenge the verdict.

Source: Premier League Independent Commission / BBC Sport