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Manchester City Guilty of Financial Rule Breaches
Confirmed
In Short: The Premier League found Manchester City guilty of all charges related to financial rule breaches, including sham contracts and a £830m disguised funding scheme.
The Premier League confirmed on Tuesday that Manchester City have been found guilty of all charges related to breaches of financial rules between the 2009-10 and 2017-18 seasons. An independent commission found that the club arranged 'sham contracts' and relied on 'sham agreements' to artificially inflate revenues and reduce costs.
The commission also found that the club was guilty of all charges except one relating to non-cooperation with the Premier League investigation. It noted that 'a number of important Club witnesses gave false evidence in key respects and that some knowingly gave untrue and dishonest evidence.
Manchester City's chief executive has launched a passionate internal defence of the club, claiming the entire ruling is based on a single false accusation. Former chairman David Bernstein has issued a scathing assessment of the club's position, while Wayne Rooney has claimed that City should not be stripped of their previous titles despite the guilty verdict.
The ruling exposed sham contracts designed to artificially inflate club revenues and a disguised funding scheme, making this one of the most serious financial misconduct cases in English football. The sham commercial deals were described as part of a 'disguised funding scheme' to the scale of £830.69m.
According to the Premier League, some of City’s sponsors were required to pay only a portion of the agreed sponsorship fees, while the remainder was funded by Abu Dhabi United Group Investment & Development Ltd (ADUG), which owned the club. The commission also found that City entered into a 'sham' circular arrangement with Fordham, an entity that purchased the image rights of the club’s players, with the arrangement also funded by ADUG.
The Premier League said the purpose of the schemes was to make City appear compliant with financial regulations by artificially increasing its revenues and reducing its costs by more than £900 million during the affected period. The findings mean Manchester City failed to accurately report its income and expenditure under the league’s Profitability and Sustainability Rules (PSR) and UEFA’s Club Licensing and Financial Fair Play Rules.
Manchester City have known about the verdict since July, which is sure to raise eyebrows in the Premier League given the extent of their spending during the summer. The club has responded with immediate defiance, claiming the verdict is based on false evidence and pledging to take their fight through all possible avenues.
On the pitch, City sit top of the Premier League with 15 points from five games after beating Sunderland 5-3, and face Liverpool at Anfield on October 11.
What this adds
Manchester City's chief executive and former chairman have issued strong reactions to the verdict, while the club has vowed to contest the findings. The extent of the club's knowledge of the verdict before the summer transfer window adds another layer of controversy to the case.
What's confirmed
- The League confirmed that City have been found guilty of all charges related to breaches of Premier League financial rules between the 2009-10 and 2017-18 seasons.
- The sham commercial deals were described as being part of a "disguised funding scheme" to the scale of £830.69m.
What's still developing
- Guardiola left the Etihad at the end of last season. 25 September 2026: Reports emerge that a verdict has been reached, with sources telling the BBC that City have been found guilty of breaking the majority of the charges.
- Only £43m of it was legitimate - the rest came from their owners and was disguised.
- It also describes "deliberate or reckless conduct intended to circumvent the Premier League rules" and that the "sham" scheme devised by City allowed the club "to avoid recording what would otherwise have been the largest single-season loss in Premier League history in 2009-10".
- Adding to the turbulence, reports emerged that City learned of the guilty verdict months earlier before completing a 440 million pound summer transfer spree.