Manchester City F.C. have been found guilty of serious breaches of Premier League financial rules in a landmark ruling that could have major consequences for English football.
An independent commission concluded that Manchester City systematically broke league rules across nine seasons between 2009 and 2018.
The findings include commercial arrangements described by the commission as "sham" contracts, inaccurate financial reporting, breaches of spending rules and failures to cooperate properly with the Premier League investigation. �
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No punishment has yet been announced.
Manchester City continue to deny wrongdoing and have confirmed they intend to appeal the decision.
What Manchester City were found guilty of
The Premier League said the independent commission found serious financial breaches covering the period from the 2009 to 2010 season through 2017 to 2018.
According to the findings, Manchester City arranged commercial agreements that misrepresented the true financial arrangements between the parties.
The commission concluded that these arrangements formed part of schemes that artificially increased the club's reported revenue and reduced its reported costs by more than £900 million over the affected period. �
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Sky Sports reported that approximately £830 million involved revenue connected to what the commission described as a "disguised funding scheme." �
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The ruling also found that Manchester City filed misstated accounts and concealed the true state of the club's finances from auditors and football regulators.
The commission further concluded that City significantly breached spending limits imposed by both the Premier League and UEFA. �
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The £900 million finding explained
The financial arrangements are at the heart of the case.
The commission examined sponsorship agreements involving companies associated with Abu Dhabi.
According to the findings reported by Reuters and other British media, some commercial partners were required to pay only part of the sponsorship amounts officially recorded by Manchester City.
The remaining money was funded through Abu Dhabi United Group Investment and Development, known as ADUG, which owned the club. �
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The commission concluded that this allowed Manchester City to report stronger commercial revenue while recording lower costs than the club was actually incurring.
That distinction mattered because football's financial regulations restrict how much clubs can lose and spend relative to their legitimate revenue.
Higher sponsorship income could therefore give a club considerably more room to spend on players, salaries and other football operations.
Premier League calls case historic
Premier League chief executive Richard Masters described the disciplinary case and decision as the most significant in the competition's history.
The league said the ruling established how Manchester City systematically broke Premier League rules for almost a decade. �
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The investigation itself has lasted years.
Manchester City were formally charged in 2023 following an extensive Premier League investigation into the club's finances.
The case subsequently developed into one of the most closely watched legal battles in world football.
Hearings before the independent commission eventually led to the ruling that has now been made public.
City also found guilty over cooperation
The financial allegations were not the only issue considered by the commission.
Manchester City were also accused of failing to cooperate properly with the Premier League's investigation.
The independent commission upheld three of four charges concerning cooperation and good faith obligations. �
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The commission also made serious findings concerning evidence presented during the proceedings.
According to the published findings reported by The Guardian, some witnesses appearing on behalf of Manchester City provided evidence that the commission concluded was untrue in important respects. �
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Those findings could become another important part of the appeals process.
Manchester City strongly deny wrongdoing
Manchester City have rejected the commission's conclusions.
The club said it was both disappointed and surprised by the ruling and maintains that it is innocent of the accusations made by the Premier League.
City argue that there is substantial evidence supporting the club's position.
The club also claims the commission's opinion contains significant errors involving law, principle and fact.
Manchester City have confirmed that they intend to appeal. �
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Chief executive Ferran Soriano has also strongly defended the club's position following publication of the findings.
That means the case is not yet finished.
What punishment could Manchester City face?
This is now the biggest unanswered question.
The independent commission has established its findings on the financial charges, but sanctions will be determined separately.
Premier League rules provide a range of possible disciplinary measures.
These can include financial penalties, points deductions, suspension or, in the most extreme circumstances, expulsion from the competition. �
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However, no specific punishment has been confirmed.
Claims that Manchester City have already been relegated, expelled or stripped of titles are therefore incorrect.
The sanction process remains separate from the ruling on the charges.
A further private hearing will consider what punishment should follow if the findings remain in place. �
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Could Manchester City be relegated?
Relegation is one of the possibilities attracting enormous attention among football supporters, but it is not currently a confirmed outcome.
The Premier League rulebook allows serious sanctions, including points deductions and potentially expulsion.
Recent financial cases involving Everton and Nottingham Forest resulted in points deductions, although Manchester City's case is substantially larger and involves different allegations and circumstances.
There is therefore no direct precedent that determines exactly what punishment City would receive.
The scale of the commission's findings makes the sanction hearing particularly important.
Until that process is completed, any specific prediction about relegation or the size of a points deduction remains speculation.
Could Man City lose Premier League titles?
Another major question concerns Manchester City's trophies.
The club became the dominant force in English football following the 2008 takeover by Sheikh Mansour bin Zayed Al Nahyan.
Manchester City have won multiple Premier League titles, domestic cups and the UEFA Champions League during the ownership era.
Some of those trophies were won during the period covered by the commission's findings.
However, no Manchester City title has been stripped as a result of this ruling.
The Premier League has not announced that past championships will be reassigned.
The immediate legal process concerns sanctions arising from the financial breaches and City's expected appeal.
Why the verdict matters beyond Manchester City
The case could reshape how financial regulations are enforced across English football.
Premier League clubs operate under rules intended to prevent teams from spending unlimited amounts beyond their genuine revenues.
Sponsorship agreements are particularly important because they can substantially increase the amount of money clubs are permitted to spend.
The Manchester City ruling therefore goes beyond accounting.
It concerns one of the central questions facing modern football: how leagues can regulate clubs backed by extremely wealthy owners while maintaining competitive financial rules.
The case will also be closely watched by investors, rival clubs and regulators across European football.
What happens next?
Manchester City have until Friday, October 2 to exercise their right to appeal the independent commission's findings. �
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The sanctions process is also expected to continue separately.
The Premier League has said it wants the remaining proceedings completed as quickly as possible to provide clarity for clubs and supporters.
Any appeal could nevertheless extend one of the longest and most complicated disciplinary battles English football has ever seen.
For Manchester City supporters, the most important point is that the verdict is significant but the final outcome remains unresolved.
The club has been found guilty by the independent commission of serious financial rule breaches, but City continue to contest those findings.
The next major developments will be the formal appeal process and, crucially, the decision on sanctions.
