Manchester City face major Premier League sanctions over financial breaches

Club found guilty of widespread financial rule violations after a nine-year investigation, with appeal and potential punishment still ahead

Manchester City face severe sanctions after being found guilty of serious breaches of the Premier League’s financial regulations spanning nine seasons.

The Abu Dhabi-backed club was found to have arranged “sham” agreements with several commercial partners to artificially increase revenues and reduce costs by more than 900 million ($1.2 billion) between 2009 and 2018.

By doing so, City concealed the true condition of their finances and avoided breaches of Premier League and UEFA spending regulations.

An independent commission also ruled against the club on most charges related to its failure to co-operate with the league’s investigation.

No punishment has been issued yet, and City have confirmed they will appeal the decision.

However, the ruling is expected to have major consequences for English football, with City’s Premier League status potentially at risk and questions emerging over whether previous titles could be removed.

“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,” Premier League chief executive Richard Masters said in a statement on Tuesday.

“This disciplinary case, and this decision, are the most significant in Premier League history.

“Now we have the commission’s decision, we are committed to moving swiftly through the remainder of the process, to provide certainty for the league, our clubs and fans.”

The commission found that City had structured commercial agreements under which companies were required to pay only part of the agreed sponsorship amounts.

The remaining sums were financed by Sheikh Mansour bin Zayed al-Nahyan’s Abu Dhabi United Group Investment and Development (ADUG), the organisation that owned the club.

Additional arrangements funded by ADUG allowed City to record operating expenses below the amounts they had actually incurred.

Consequently, the club failed to provide accurate figures for its income and expenditure under the Premier League and UEFA’s financial sustainability regulations.

The scheme was found to have overstated revenue by more than 830 million, while image-rights income was inflated by almost 74 million and liabilities connected to staff contracts were understated by nearly 17 million.

The commission concluded that City would have exceeded spending limits “by a very substantial amount” had the club reported its finances accurately.

City set to appeal

City were also found to have “made concerted efforts to stop and frustrate the Premier League” throughout a four-year investigation.

The commission ruled that evidence provided by several key factual witnesses on behalf of City was “false in a number of key respects”.

It further stated that “certain of those factual witnesses had given evidence at the hearing that they knew to be untrue and so had been dishonest”.

“It’s incredibly serious, the Premier League report is incredibly stark,” said British government culture, media and sport secretary Lisa Nandy.

Since Sheikh Mansour, the vice-president and deputy prime minister of the United Arab Emirates, took over the club in 2008, City have emerged as the Premier League’s dominant side.

During the past 15 years, they have won eight Premier League titles, four FA Cups and seven League Cups, while also securing their first Champions League title in 2023.

However, that same year the Premier League charged the club with more than 100 alleged breaches following an investigation into its financial conduct.

The independent commission hearing began in September 2024 and concluded three months later.

City expressed “surprise” at the ruling and said they would continue their efforts to clear the club’s name.

“Manchester City FC will now pursue the appeal avenues open to it, on the basis that the opinion contains clear material errors of law, principle and fact, and is unsafe,” the club said in a statement.

Under Premier League regulations, the punishment could range from a points deduction or financial penalty to expulsion from the division.

Everton and Nottingham Forest received points deductions during the 2023/24 season for individual breaches of financial sustainability regulations.

If a similar punishment were imposed for each of City’s more than 100 charges, the club could face relegation.

“If the appeal fails, Manchester City cannot stay in the league; they have to suffer. And I say that as a supporter and a fan,” said former City chairman David Bernstein.