Manchester City’s remarkable rise to the summit of English football has been plunged into uncertainty after an independent commission found the club guilty of almost all the financial rule breaches brought against it by the Premier League.
The commission ruled that City breached all but one of the 115 charges relating to alleged financial violations between 2009 and 2018. It also found the club guilty of the majority of charges concerning its alleged failure to cooperate with the Premier League’s investigation.
The verdict represents one of the most significant developments in Premier League history. However, no sanction has yet been imposed, and the eventual punishment remains to be determined.
Under the Premier League’s rules, potential sanctions include fines, points deductions and, in the most serious circumstances, expulsion from the competition. The commission may also determine an appropriate combination of sanctions. City are expected to appeal the findings.
The case centred on allegations that City failed to provide accurate financial information, concealed payments made to players and managers, and artificially inflated sponsorship revenues through what the Premier League described as “sham” commercial agreements.
The league said the arrangements formed part of a disguised funding scheme worth more than £830 million. The commission found that City recorded £360 million in sponsorship revenue during three Premier League-winning seasons, 2011-12, 2013-14 and 2017-18, but determined that approximately £43 million represented legitimate sponsorship income. The commission also found that the club submitted misstated accounts and concealed the true state of its finances from auditors and football regulators.
The eventual sanction could have consequences extending beyond a financial penalty. If a points deduction is imposed, it could affect City’s position in the current Premier League season. Depending on the terms of any eventual sanction, there could also be questions about honours won during the period covered by the charges.
However, there has been no decision at this stage to strip City of any titles, and any such consequence should not be assumed before the sanctioning process and any subsequent appeals are concluded. The verdict could also prompt rival clubs to consider legal claims for compensation if they believe they suffered identifiable losses as a result of conduct established by the commission. Whether such claims could succeed would depend on separate legal proceedings, the applicable rules and the evidence presented.
The possibility of a substantial sporting sanction could therefore affect the club’s ability to retain or attract players, depending on the nature and severity of any punishment. It could also create uncertainty around the club’s commercial relationships and the reputation of its Abu Dhabi ownership.
The case has taken years to reach this stage following a leaked financial document published by German newspaper Der Spiegel in 2018. UEFA subsequently investigated City and imposed a two-year ban from European competition and a €30 million fine in 2020. The ban was later overturned by the Court of Arbitration for Sport, although City were fined for failing to cooperate with UEFA’s investigation. The Premier League eventually charged City with 115 breaches in February 2023.
Now, the focus shifts from the verdict to the sanction and the appeal process. The club’s trophies remain officially recorded, but the independent commission’s findings, the forthcoming sanction and City’s expected appeal mean the sporting and legal consequences of the case are far from settled. For Manchester City, and for the Premier League as a whole, the most consequential phase of the case may only just be beginning.