The Premier League has condemned Manchester City for "sham" deals, confirming the club is guilty of the most severe breaches of financial rules. A scathing statement revealed that City repeatedly misled the league about their financial situation over a nine-year period, with "sham" contracts used to artificially inflate revenues by approximately £900 million.
According to the Premier League, the club engaged in "sham contracts (which misrepresented the true agreement between the parties) with a number of its commercial partners, as well as relying on 'sham' agreements with others, to artificially inflate the club's revenues and reduce its costs." These agreements, many funded by the Abu Dhabi United Group (ADUG), allowed City to present a falsely improved financial picture, enabling them to spend more under league regulations.
The league detailed that revenues were inflated and costs reduced to the tune of £900 million in an effort to comply with spending rules. As a result, the club "filed misstated accounts and concealed the true state of its finances from its auditors and football regulators." The Premier League stated that City was "significantly in breach of both the Premier League's and UEFA's spending limits" during the period in question (2009-2018), a time during which the club won eight major trophies. Had the club reported accurately, it would have been in substantial breach of these limits.
Furthermore, the independent panel found that Manchester City committed multiple breaches of its duty to cooperate and act in good faith, failing to assist the Premier League's four-year investigation. The club had made "concerted efforts to stop and frustrate the PL investigation."
Premier League CEO Richard Masters stated that the commission's verdict "vindicates" the league's decision to pursue the charges. He emphasized the league's responsibility to uphold rules and ensure competition integrity, calling the disciplinary case "the most significant in Premier League history." Masters committed to moving swiftly through the remaining process to determine sanctions.
Manchester City, in a statement, expressed disappointment and surprise, asserting their innocence and the existence of "a comprehensive body of irrefutable evidence." The club intends to pursue all available appeal avenues, citing "clear material errors, of law, principle and fact" in the Premier League Commission's opinion. City reiterated its commitment to due process and its expectation that the Premier League would act as an independent regulator.
Former financial advisor to Manchester City, Stefan Borson, suggested that any appeal by the club would likely fail, describing the Premier League's announcement as "scathing" and noting the difficulty of overturning proven breaches. Former Liverpool player Stan Collymore called for severe sanctions, including expulsion from the Premier League and EFL, substantial fines, and an independent commission into all Premier League clubs' financial conduct.
Manchester City was first charged with 130 breaches in February 2023, encompassing failures to provide accurate financial information, breaches of UEFA and Premier League profit and sustainability regulations, and failure to cooperate with investigations. The hearing for these charges began in September.
