Manchester City Found Guilty of Financial Rule Violations by Independent Commission

An independent Commission has ruled that Manchester City violated Premier League financial regulations, revealing serious misconduct over nearly a decade. The club has denied the allegations and plans to appeal, claiming to possess irrefutable evidence supporting its innocence. The findings indicate that Manchester City engaged in deceptive practices to inflate revenues and misrepresent financial statements. This landmark decision could have significant implications for the club's future in the league. Read on to discover the details of the investigation and the club's response.

By Narendra Chaudhary Sep 30, 2026, 02:24 IST

Manchester City Faces Serious Financial Breaches

Manchester, UK - On September 30, an independent Commission has determined that Manchester City has committed significant violations of the Premier League's financial regulations, particularly concerning financial reporting, as stated on the Premier League's official website.

The club has firmly declared its innocence regarding these allegations and intends to explore all legal and regulatory options available to it.

According to the Premier League's announcement, the Commission discovered that from the 2009/10 to the 2017/18 seasons, Manchester City engaged in 'sham' contracts with various commercial partners, misrepresenting the actual agreements to artificially boost the club's revenue and minimize its expenses. The Commission also noted that the club submitted inaccurate financial statements, obscured its financial situation from auditors and football regulators, and significantly breached both Premier League and UEFA spending limits, with three out of four alleged breaches confirmed.

The Commission's findings revealed that Manchester City orchestrated 'sham' commercial agreements with several sponsors during this timeframe, which were part of a concealed funding scheme. In this arrangement, the 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, financed by ADUG, were established to allow the club to report lower operational costs than it actually incurred, along with a 'sham' circular arrangement involving Fordham, an entity that acquired the image rights of the club's players, also funded by ADUG.

The objective of these schemes was to artificially inflate the club's revenues and reduce its costs by over £900 million during the specified period, thereby creating an illusion of compliance with financial regulations. The Commission concluded that the club's actions were intended to circumvent Premier League rules.

Furthermore, the Commission found that Manchester City did not accurately report its financials in accordance with Premier League and UEFA regulations, which would have led to substantial breaches of spending limits. The club also failed to cooperate during the Premier League's investigation and attempted to obstruct the process.

Consequently, Manchester City did not accurately report its income and expenses as required by the Premier League's Profitability and Sustainability Rules and UEFA's Club Licensing and Financial Fair Play Rules. The Commission indicated that had all relevant agreements been properly reported, the club would have significantly exceeded both the Premier League and UEFA spending limits.

During the four-year investigation by the Premier League, the club committed multiple breaches of its cooperation duties and made efforts to hinder the investigation.

Richard Masters, the Premier League's Chief Executive, stated that this decision clarifies 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 maintaining the integrity of the competition and ensuring fairness for all clubs and fans.

He described this disciplinary case and its outcome as the most significant in Premier League history.

Masters noted that there are still aspects of the case that need resolution, particularly regarding the sanctions that will follow these breaches. With the Commission's decision now established, the League is committed to swiftly progressing through the remaining processes to provide clarity for the League, its clubs, and fans.

In response to the findings, Manchester City FC expressed disappointment and surprise, reiterating its stance of innocence and commitment to pursuing all legal avenues.

The club stated that it possesses a comprehensive body of irrefutable evidence supporting its position in this case and will vigorously pursue all appropriate regulatory and legal channels.

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. The club emphasized its respect for due process over the past eight years and refrained from further comments until future proceedings are concluded.

In its statement, the club reiterated that the Premier League process is still in progress, with significant elements yet to be resolved. Manchester City FC will now pursue available appeal options, asserting that the Commission's opinion contains clear material errors and is unsafe. The club has diligently respected due process for eight years, expecting the Premier League Board and Executive to act as an independent and impartial regulator, free from bias. The club is limited in its ability to comment further until all future proceedings are finalized.