The Premier League has confirmed that Manchester City breached the competition’s financial rules over a nine-season period, according to an official statement issued by the league.
The league said most of the breaches related to the club’s failure to fully cooperate with its investigation.
An independent commission found that the breaches occurred between the 2009/10 and 2017/18 seasons.
According to the Premier League, Manchester City arranged “sham” contracts with several commercial partners, which allegedly misrepresented the actual agreements between the parties. The club was also found to have relied on similar agreements that artificially increased its reported revenues and reduced its costs.
The commission further found that the club submitted misstated financial accounts and concealed the true state of its finances from auditors and football regulators.
Manchester City was also found to have significantly breached both Premier League and UEFA spending limits during the period under review.
The commission additionally determined that the club committed multiple breaches of its duties to cooperate with the Premier League and act in good faith during the league’s investigation. Three of the four alleged breaches were upheld.
The independent commission found that some of City’s commercial arrangements formed part of what it described as a disguised funding scheme, under which sponsors paid only part of the agreed sponsorship fees, while the remainder was funded by Abu Dhabi United Group Investment & Development Ltd (ADUG), the club’s owner.
The Premier League said the arrangements resulted in Manchester City failing to accurately report its income and expenditure for the purposes of the league’s Profitability and Sustainability Rules and UEFA’s Club Licensing and Financial Fair Play Rules.
Premier League Chief Executive Richard Masters said the decision established the facts surrounding the club’s conduct during the period under investigation.
“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.
“It also vindicates the Premier League’s decision to pursue this case against Manchester City. While the process to date has been both long and difficult, the League has remained determined that the facts be established independently.
“It is a key responsibility of the Premier League to ensure that the Rules, approved by the clubs themselves, are upheld to protect the integrity of the competition. It is paramount that the League remains competitive and fair for all clubs and for the fans. We take that role extremely seriously.
“This disciplinary case, and this decision, are the most significant in Premier League history. There are elements of the case that remain to be decided, including, importantly, what sanction must follow for these breaches. 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 Premier League said the sanction to be imposed for the breaches remains to be determined, meaning the disciplinary process is not yet complete.
