Manchester City Found Guilty of Financial Rule Violations by Independent Commission

An independent Commission has ruled that Manchester City committed serious breaches of the Premier League's financial regulations, including misrepresenting financial agreements and failing to report accurate financial data. The club has declared its innocence and plans to appeal the findings, claiming to have substantial evidence supporting its position. Premier League CEO Richard Masters emphasized the importance of upholding the rules to maintain competition integrity. The case marks a significant moment in Premier League history as the club faces potential sanctions for its actions. Read on for more details about the findings and the club's response.

By Narendra Chaudhary Sep 30, 2026, 02:03 IST

Overview of the Findings

An independent Commission has determined that Manchester City has committed serious violations of the Premier League's financial regulations, particularly concerning financial reporting, as stated on the Premier League's official website. The club has declared its innocence regarding these allegations and intends to explore all legal and regulatory options available.

Details of the Violations

According to the Premier League's statement, the Commission discovered that from the 2009/10 to the 2017/18 seasons, Manchester City engaged in 'sham' contracts with various commercial partners. These contracts misrepresented the actual agreements, leading to inflated revenues and reduced costs for the club. The Commission also noted that the club submitted inaccurate financial statements, concealed its financial status from auditors and regulators, and significantly breached spending limits set by both the Premier League and UEFA. Out of four alleged breaches, three were upheld.

Commission's Findings on Financial Breaches

The Commission's investigation revealed that Manchester City orchestrated 'sham' commercial agreements with several sponsors, which were part of a concealed funding scheme. These sponsors were only required to pay a fraction of the sponsorship fees, with the remainder funded by Abu Dhabi United Group Investment & Development Ltd (ADUG), the club's owner. Additionally, further 'sham' arrangements were created to allow the club to report lower operating expenses than what was actually incurred. The Premier League's statement elaborated that these schemes aimed to artificially inflate the club's revenues and reduce costs by over £900 million during the specified period, thereby creating an illusion of compliance with financial regulations.

Consequences of the Findings

The Commission concluded that Manchester City failed to accurately report its financials in accordance with Premier League and UEFA regulations, leading to significant breaches of spending limits. Furthermore, the club was found to have obstructed the Premier League's investigation, breaching its duty to cooperate. The Commission stated that had the club reported all relevant agreements accurately, it would have exceeded both the Premier League's and UEFA's spending limits by a considerable margin.

Premier League's Response

Richard Masters, the Premier League's Chief Executive, commented that the decision establishes the facts surrounding Manchester City's actions during this period. He emphasized that the club systematically violated Premier League rules for nearly a decade, validating the League's decision to pursue this case. Masters highlighted the importance of upholding the rules to maintain the integrity of the competition, ensuring fairness for all clubs and fans.

Manchester City's Reaction

In light of the findings, Manchester City expressed disappointment and surprise, reiterating its innocence regarding the allegations. The club stated that it possesses a substantial body of irrefutable evidence supporting its position and will vigorously pursue all available legal and regulatory avenues. Manchester City confirmed that the Premier League process is ongoing and intends to appeal, arguing that the Commission's findings contain legal, principled, and factual errors.