The English Premier League condemns Manchester City for financial irregularities and describes it as a disguised financing scheme

The Premier League has announced that Manchester City entered into fictitious “sham contracts” with a number of commercial partners as part of a scheme to hide secret financing of more than £830 million.

The League confirmed that Manchester City had been found guilty of all charges related to violating the English Premier League’s financial rules between the 2009-10 and 2017-18 seasons.

An independent panel concluded that during that time period, the club entered into “sham contracts” as well as “relying on sham agreements to artificially inflate the club’s revenues and reduce its expenses.”

The club continues to deny any wrongdoing, and has until October 2 to appeal.

Last week, it was reported that Manchester City had been found guilty of violating the majority of the 115 financial rules it was accused of violating, but on Tuesday the English Premier League published a revised version of the relevant committee’s report.

The committee's report stated that the charges "relate to more than 100 individual cases of alleged violations of Premier League rules distributed across four main categories of charges."

The committee also found the club guilty of all charges against it except one charge of failure to cooperate with the Premier League investigation, and said that “a number of important witnesses affiliated with the club gave false testimony in material respects, and that some of them deliberately provided incorrect and misleading testimony.”

The fictitious business deals were described as part of a “disguised financing scheme” worth £830.69 million.

Manchester City recorded revenues of £360 million from sponsorship contracts in the three seasons it won the Premier League - 2011-2012, 2013-2014, and 2017-2018. However, only 43 million of this amount was legitimate money, while the rest of the money came from the club owners and its true source was hidden.

The Commission stated that the sponsorship agreements in question were fraudulent, or at least did not reflect their economic substance.

The report also describes “deliberate or reckless conduct intended to circumvent the rules of the Premier League” and that the “sham” scheme devised by Manchester City allowed the club “to avoid recording what would otherwise have been the biggest loss in a single season in the history of the Premier League in the 2009-10 season.”

The committee highlighted the amount of evidence it had to consider, noting that the index alone amounted to more than 750 pages, while the collection of primary documents “consisted of tens of thousands of pages.”

It is worth noting that Manchester City is owned by Abu Dhabi United Group, which acquired the club in 2008, and is referred to as “ADUG” in the committee’s report.

“The credibility of the English Premier League is at stake.”

Richard Masters, Premier League chief executive, said: “The substantive decision establishes the facts about what happened at Manchester City during this period. It details how the club has systematically flouted Premier League rules for almost a decade.”

He added: "This also confirms the validity of the English Premier League's decision to move forward with this case against Manchester City. Although the procedures followed so far have been long and arduous, the League remains determined on the need to establish the facts independently."

Masters continued: “One of the Premier League’s key responsibilities is to ensure adherence to the rules - approved by the clubs themselves - to protect the integrity of the competition. It is vital that the league remains competitive and fair for all clubs and fans alike, and we attach great importance to this role.”

The Premier League stated that Manchester City's punishment "will be considered separately in a further hearing with the independent committee."

League rules stipulate the confidentiality and privacy of the hearing.

Lisa Nandy, Minister for Culture, Media and Sport, told the BBC: “The matter is extremely serious, and the Premier League report carries very severe implications.”

She added: "This matter raises grave concerns for Manchester City fans and all fans of the English Premier League."

David Bernstein, who was Manchester City president between 1998 and 2003, said that "the credibility of the Premier League is at stake" after the ruling was issued.

He added: "It is beyond belief. They [the Premier League] have spoken about providing false documents and behavior that has continued over many years, which is absolutely unbelievable."

He continued: “There has always been a conviction among lawyers about the necessity of continuous and permanent denial until the last breath, but we are talking here about a football club that is part of the League, and the credibility of the English Premier League and the entire competition is at stake. The matter is extremely dangerous, and I wonder - given the nature of the accusations - whether the matter may require referring some of these cases to parties outside the scope of the League.”

He concluded his speech by saying: “Punishments cannot be limited to the financial aspect only. Money does not mean much to the club’s owners in Abu Dhabi. If these accusations are proven true and the appeal is rejected, Manchester City cannot remain in the English Premier League, as a strict penalty must be imposed that leads to its exclusion from the competition, and I say this as a fan and lover of the club for seventy years.

What did Manchester City say?

A statement from the club said: “Manchester City Football Club is disappointed and astonished by the opinion issued today by the Premier League Committee.”

The statement stressed that “the club is innocent of the accusations brought against it by the English Premier League, and it has conclusive evidence to support all of its positions related to this issue.” Accordingly, the club will continue its fight relentlessly, and will take proactive measures when necessary, in all appropriate regulatory and legal forums.”

He explained, “The English Premier League procedures are still ongoing, with important elements that have not been completed. Manchester City will now resort to the means of appeal available to it, based on the fact that the opinion contains clear fundamental errors, whether in law, principles or facts, and that it is unsound.”

The statement added: “The club has diligently respected the necessary litigation procedures for eight years, based on the assumption that the Premier League’s Board of Directors and Executive Management will both act as an independent, impartial and fair regulator, free from any partisan influences.”

He pointed out, "It is clear that the club is restricted in what it can announce currently until all future procedures are completed."

Manchester City chief executive Ferran Soriano declined to comment when contacted by BBC Sport, but later issued a video message to club staff in which he criticized the “premier league conspiracy theory” and insisted the club “will be proven innocent”.

Calendar of events

November 2018: Allegations appeared to Football Leaks, the largest leak site in the history of sports, with the German magazine Der Spiegel publishing allegations that Manchester City had violated Financial Fair Play rules.

May 2019: The club criticized the investigation process and launched an appeals process.

November 2019: The Court of Arbitration for Sport (CAS) announced that it would not accept Manchester City’s appeal.

February 2020: The European Football Association (UEFA) announced a two-year ban on Manchester City from participating in European competitions and imposed a fine of 30 million euros.

February 2023: The Premier League charges Manchester City with 115 financial violations.

September 2024: A 10-week hearing begins between the Premier League and Manchester City over the 115 charges against the club.

25 September 2026: Reports emerge that a verdict has been reached, with sources telling the BBC that Manchester City have been found guilty of most of the offenses charged.

September 29, 2026: The English Premier League announced the results of the investigation through an independent committee, confirming the club’s guilt.