(Seoul = Yonhap News) Reporter Ahn Hong-seok = An official announcement was made that Manchester City of the English professional soccer Premier League (EPL) had violated financial regulations for almost 10 years by manipulating its financial status with 'false' contracts.
According to major foreign media outlets such as Reuters, the EPL announced on the 29th (local time) that the independent committee that investigated this matter found Manchester City guilty on all charges of violating financial regulations over nine seasons from the 2009-2010 season to the 2017-2018 season and three out of four charges related to non-cooperation with the investigation.
The EPL officially confirmed this four days after The Athletic reported on the 25th that Manchester City had been found guilty on most of the charges, citing an anonymous official.
The independent committee determined that Manchester City entered into 'false' contracts with several commercial partners that distorted actual agreements, thereby inflating sales and artificially reducing costs.
Some sponsors paid only a portion of the amount stated in the contract, and the team owner, Abu Dhabi United Group (ADUG), paid the rest. Through a separate agreement financed by ADUG, Man City recorded operating expenses on its books that were lower than actual expenses.
The amount inflated or reduced in this way exceeds 900 million pounds (about 1.6 trillion won). Sales were inflated by more than ยฃ830 million, image rights income was overstated by around ยฃ74 million and liabilities related to staff contracts were understated by around ยฃ17 million.
The committee concluded that if Manchester City had reported accurately, it would have "exceeded the EPL and UEFA spending limits by a very large margin".
The committee also determined that during the hearing that lasted 42 days, several of Manchester City's witnesses gave false testimony, and some knowingly misled the committee.
EPL CEO Richard Masters said: โThis disciplinary case and decision is the most significant in EPL history, detailing how Manchester City have systematically broken EPL rules for almost a decade.โ
โNow that the committeeโs decision has been made, we will expedite the remaining procedures to provide certainty to the league, clubs, and fans,โ he said.
The level of sanctions has not been determined. Under EPL regulations, point deductions, fines, and even expulsion from the league are possible.
Manchester City issued a statement and said it would appeal, saying, "The club is innocent of the charges raised by the EPL, and there is extensive irrefutable evidence supporting all of the club's positions regarding this incident." The appeal deadline is October 2.
In a video sent to employees, Manchester City CEO Ferran Soriano also refuted, saying, "The entire EPL case is based on a single false claim that the team owner's personal money was secretly brought into the club through some sponsors in Abu Dhabi," adding, "This is not true."
British Culture Secretary Lisa Nandy said, "This is very serious. The EPL report is very explicit," and urged a quick and fair conclusion.
There is a precedent for Everton and Nottingham Forest being deducted from points in the 2023-2024 season due to a 'short-term' violation of financial regulations.
If the same standard is applied to the more than 100 charges filed against Manchester City, it seems likely that Manchester City will be relegated.
Since being acquired by Sheikh Mansour, Vice President and Deputy Prime Minister of the United Arab Emirates (UAE) in 2008, Manchester City has won the EPL 8 times, the FA Cup 4 times, and the League Cup 7 times over the past 15 years, and reached the top of the UEFA Champions League for the first time in 2023.
Former Manchester City Chairman David Bernstein said, "If the appeal fails, Manchester City will have to face severe disciplinary action, including expulsion from the league. I say this as a Manchester City fan for 70 years."
