Manchester City was found guilty of violating the Premier League’s financial regulations over a nine-season period, according to an official announcement from the league.
It stated that the majority of the accusations stem from its refusal to assist the League’s inquiry. Between seasons 2009–10 and 2017–18, the independent committee discovered that:
In order to artificially inflate the club’s earnings and cut expenses, Manchester City set up “sham” contracts (which misrepresented the genuine arrangement between the parties) with several of its commercial partners and relied on “sham” agreements with others.
The team disguised its actual financial situation from football regulators and auditors by filing false financial statements.
Manchester City seriously exceeded the expenditure caps set by UEFA and the Premier League.
Manchester City repeatedly violated its obligations to cooperate and act in the League’s best interests during the Premier League’s investigation (three of the four claimed violations were upheld).
According to the independent committee, City set up “sham” business agreements with some of its sponsors at that time. These agreements were a part of a covert fundraising scheme in which the sponsors were only obliged to pay a percentage of the applicable sponsorship costs.
The club’s owner, Abu Dhabi United Group Investment & Development Ltd (ADUG), provided the remaining funds.
For the purposes of UEFA’s Club Licensing and Financial Fair Play Rules and the Premier League’s Profitability and Sustainability Rules, City consequently failed to appropriately declare its revenue and expenses.
“The core decision establishes the facts of what happened at Manchester City during this period,” stated Premier League Chief Executive Richard Masters. It describes how the team routinely violated Premier League regulations for almost ten years.
It also supports the Premier League’s choice to take Manchester City to court. The League is adamant that the facts be established independently, notwithstanding the lengthy and challenging process thus far.
“Upholding the Rules, which are agreed by the clubs themselves, is a crucial duty of the Premier League in order to preserve the competition’s integrity. Maintaining the League’s competitiveness and fairness for all clubs and supporters is crucial. We are quite serious about that duty.
“This ruling and the disciplinary case are the most important in Premier League history. There are still other aspects of the case that need to be resolved, most notably the appropriate punishment for these violations. Now that the Commission has made its decision, we are determined to move quickly through the remaining steps in order to give the League, our clubs, and our supporters peace of mind.