Man City found guilty of all charges related to serious breaches of financial rules, Premier League says

Man City found guilty of all financial-rule charges

Poinews.com – Man City found guilty of all charges related to serious breaches of Premier League financial rules is the conclusion reached by an independent commission after examining the club’s arrangements from 2009-10 to 2017-18.

The Premier League said the findings concern commercial agreements that were not genuine at their stated value. According to the commission, the arrangements made Manchester City’s financial position appear stronger than it actually was.

Manchester City rejects the allegations and plans to appeal. The club has until 2 October to submit its appeal against the decision.

Commercial deals and funding examined

The commission found that the club used what it described as “sham contracts” with commercial partners. These agreements were said to have artificially increased reported revenue while reducing the costs shown in the club’s accounts.

The Premier League said the sponsorship arrangements were part of a disguised funding structure. The companies involved were required to pay only part of the sponsorship sums, while Abu Dhabi United Group Investment & Development Ltd (ADUG), Manchester City’s owner, financed the remainder.

The remainder was funded by Abu Dhabi United Group Investment & Development Ltd (ADUG), which owned the club.

Further arrangements involving ADUG also reduced Manchester City’s reported operating expenses, the commission found. Across the period reviewed, the schemes were said to have raised revenue and reduced costs by more than £900 million, roughly €1.05 billion.

Why the ruling matters for spending rules

Man City found guilty of all charges means the commission concluded that the club failed to report income and expenditure accurately under the Premier League’s Profitability and Sustainability Rules and UEFA’s Club Licensing and Financial Fair Play Rules.

Those regulations are intended to ensure clubs provide a reliable account of their finances and remain within permitted spending limits. The commission said that proper disclosure of the agreements and payments would have shown City exceeding domestic and European limits by a substantial margin.

Manchester City failed to accurately report its income and expenditure for the purposes of the Premier League’s Profitability and Sustainability Rules and UEFA’s Club Licensing and Financial Fair Play Rules.

The ruling also covers most allegations that the club did not cooperate adequately with the investigation. The inquiry began in late 2018, while formal charges were brought in 2023.

Appeal and possible sanctions

Although Man City found guilty of all charges is the commission’s finding on the central allegations, sanctions have not yet been decided. Any punishment will be considered separately as the process continues.

Premier League chief executive Richard Masters described the decision as the most significant in the competition’s history. He said it establishes the factual basis of what happened at Manchester City during the years under review.

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.

Manchester City said it was disappointed and surprised by the announcement. The club maintains its innocence and says it has extensive evidence to support its position during the appeal process.

Frequently asked questions

What does the Manchester City ruling mean?

The commission found that Manchester City breached financial rules through arrangements affecting reported commercial income and operating costs. The decision does not yet determine the sanction.

Can Manchester City appeal the decision?

Yes. Manchester City has said it intends to appeal and has until 2 October to submit that appeal.

Have penalties been announced?

No. The findings on the charges have been issued, but potential consequences for the club remain to be decided separately.