BDO Faces Scrutiny Over Manchester City Audits Amidst Cheating Scandal

Auditing giant BDO, responsible for signing off Manchester City's accounts since 2007, may face an investigation by the Financial Reporting Council (FRC) following the club's extensive financial rule breaches. The Premier League's independent commission found that Manchester City had misstated accounts and concealed its true financial standing from auditors and regulators over a nine-year period, between the 2009-10 and 2017-18 seasons, involving approximately £900 million.

While BDO has stated it is bound by confidentiality and cannot comment, industry sources suggest the FRC is aware of the situation and is reviewing whether it falls within its purview. The complexity of Manchester City having misled its own auditors is noted as a complicating factor.

This potential probe comes as BDO has faced FRC scrutiny in the past, having been fined £7.4 million across two separate investigations in the 2025-26 period alone, accounting for more than half of the regulator's total penalties that year.

The ramifications of the Manchester City scandal have also led to calls for a wider police investigation, with some suggesting the involvement of the Serious Fraud Office. Lord Cruddas, a financial industry figure, stated that falsified accounts and misled auditors could constitute a criminal matter, asserting that directors remain personally liable for fraud in UK companies, regardless of foreign ownership. A spokesperson for the Serious Fraud Office declined to confirm or deny any ongoing investigation, citing standard practice to avoid prejudicing law enforcement activities. Former FA and City chairman David Bernstein has also indicated that the case might warrant examination by external authorities.