Independent Commission Finds Man City Breached Premier League Financial Rules

By Sabiu Abdullahi

An independent commission has found Manchester City guilty of multiple breaches of the Premier League’s financial regulations covering a nine-season period from 2009/10 to 2017/18.

The Premier League said most of the charges related to the club’s failure to cooperate fully with its investigation.

According to the findings released by the League, Manchester City entered into what the commission described as “sham” commercial agreements with several sponsors. The arrangements allegedly misrepresented the actual agreements between the parties and helped the club inflate its reported revenue while reducing its costs.

The commission also found that the club submitted accounts that did not accurately reflect its financial position and concealed information from its auditors and football regulators.

Manchester City was further found to have significantly breached both Premier League and UEFA spending regulations during the period under review.

The commission also upheld three of four alleged breaches relating to the club’s cooperation and good-faith obligations during the Premier League’s investigation.

The League said the commercial arrangements formed part of a disguised funding structure. Under the arrangement, some sponsors paid only part of the agreed sponsorship fees, while Abu Dhabi United Group Investment & Development Ltd (ADUG), which owned the club at the time, provided the remaining funds.

The Premier League said the arrangement meant Manchester City did not accurately report its income and expenditure under 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 commission’s decision had established the facts surrounding the case.

“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 issue of sanctions for the breaches remains to be determined as the disciplinary process continues.