Manchester City have been found guilty of 114 of 115 Premier League financial rule breaches from 2009 to 2018. An independent commission found a ยฃ900 million-plus scheme involving allegedly disguised owner funding and misstated accounts. The English football club will appeal, while potential sanctions include points deductions, fines, and relegation
It is being touted as one of the biggest scandals in the history of English football, as an independent commission appointed by the Premier League delivered its explosive verdict on Tuesday.
Manchester City Football Club has been found guilty of nearly all charges brought against them, establishing that the club systematically breached financial regulations for almost a decade between the 2009/10 and 2017/18 seasons.
According to the commission’s comprehensive findings, Manchester City engaged in a prolonged, “disguised funding scheme” that inflated revenues and reduced costs by more than ยฃ900 million (approximately 1.19 billion USD or 11,5420 crore INR).
The decision follows a gruelling 21-month deliberation after a 42-day landmark hearing concluded in December 2024.
What has the independent commission proved?
The Premier League’s formal complaint under Section W of its rulebook alleged 115 breaches spanning nine consecutive seasons.
The independent commission upheld 114 of those charges, concluding that Manchester City intentionally subverted financial fair play guidelines to engineer their transformation into a dominant superpower.
Core findings of the commission include:
Sham contracts & artificially inflated revenue: The club arranged “sham” agreements with commercial partners โ predominantly Abu Dhabi-based entities โ where official sponsorship values were grossly overstated on official balance sheets.
More from ExplainersSubstantial portions of these payments were secretly funded directly by Abu Dhabi United Group (ADUG), the club’s majority owner.
Misstated accounts & concealment: Manchester City repeatedly submitted accounts that failed to give a true and fair view of their financial position. Auditors and regulators were deliberately misled regarding real operational costs and revenue origins.
Severe breaches of FFP and PSR limits: By misrepresenting income and hiding expenditure, Manchester City significantly breached both UEFAโs Financial Fair Play (FFP) regulations and the Premier Leagueโs Profitability and Sustainability Rules (PSR).
Failure to co-operate with investigators: The commission found City guilty of three out of four charges regarding non-cooperation. The ruling stated the club made “concerted efforts to stop and frustrate the Premier League investigation” over a five-year period between 2018 and 2023.
Premier League Chief Executive Richard Masters stated, “Now that the charges have been proved, the issue of sanction will be addressed separately in a further hearing with the independent Commission. In accordance with Premier League rules, that hearing will remain private and confidential until such a time as publication of the outcome is permitted.”
How did Man City’sย ยฃ900 million scheme work?
Under Premier League and UEFA rules, owners were strictly limited in how much personal money they could inject into squad building to prevent hyper-inflation and unsustainable losses.
To circumvent these limits, Manchester City constructed offshore sponsorship mechanisms:
| Financial area | Disclosed publicly | Real sourcing uncovered by commission |
| Commercial sponsorships | Paid entirely by independent Abu Dhabi state entities (eg Etihad, Etisalat). | Up to 85-90% of base fee funded directly by ADUG (Sheikh Mansour’s vehicle). |
| Manager remuneration | Partial salary disclosed under Manchester City FC contract. | Parallel consultancy contract via Al Jazira FC in Abu Dhabi (eg Roberto Mancini) doubling actual pay. |
| Player image rights | Minimal image rights expenditure recorded in official accounts. | Offshore shell companies used to route player salary supplements without accounting for FFP. |
By disguising owner equity as genuine commercial revenue, City artificially boosted their revenue figures on paper, allowing them to spend aggressively on transfer fees and wages without breaching statutory loss thresholds.
How has Manchester City responded?
Manchester City has rejected the independent commission’s findings, reiterating their stance that they possess a “comprehensive body of irrefutable evidence” supporting their innocence.
Manchester City has until Friday, October 2, to submit their formal notice of appeal to the Premier League. The club has stated that the commissionโs opinion contains “clear material errors of law, principle, and fact, and is unsafe.”
City has also vowed to be “relentless, and where necessary proactive, in any and all appropriate regulatory and legal forums.”
If the Premier Leagueโs internal appellate process upholds the guilty verdict, legal analysts expect City to take the matter to the London High Court to challenge the fairness, jurisdiction, and procedural impartiality of the tribunal.
What happens next?
The verdict issued on September 29 established liability/guilt, not the penalty itself. A separate sanctions hearing before the independent commission will be scheduled in the coming weeks to determine punishments.
Because the Premier League rulebook contains no explicit upper cap on penalties for breaches of this severity, the commission possesses discretionary powers.
Potential sanctions fall under five primary categories:
A. Record-breaking points deductions
Previous PSR breaches by Everton and Nottingham Forest have resulted in 6-to-10-point deductions for single, localised overspends.
Given that City were found guilty of systematic, intentional fraud over 9 years involving over ยฃ900 million, sports lawyers anticipate a cumulative points deduction ranging from 30 to 80 points.
The penalty could be applied in the ongoing 2026/27 Premier League season or split across multiple future campaigns.
B. Expulsion or demotion from the Premier League
Prominent stakeholders โ including former Manchester City chairman David Bernstein โ have argued that expulsion from the top flight is the only logical outcome for decade-long deceit.
The commission has the authority to expel the club from the Premier League, which would force them to seek entry into the English Football League (EFL) or Championship, subject to EFL approval.
C. Stripping of past league titles
Between 2009/10 and 2017/18, Manchester City won three Premier League titles (2011/12, 2013/14, and 2017/18), alongside multiple domestic cups. The commission can retroactively strip these titles or declare those seasons void.
However, historical title stripping is complicated and unprecedented in modern English football.
Former players and managers from runner-up teams (such as Manchester United and Liverpool) have expressed mixed views regarding whether titles should be awarded retroactively.
D. Substantial fines and compensation claims
Financial penalties will likely run into hundreds of millions of pounds.
In addition, rival Premier League clubs that suffered direct financial harm โ such as missing out on Champions League qualification, prize money, or broadcast distributions due to City’s inflated squads โ are preparing civil claims under Premier League arbitration rules.
E. Transfer bans and squad eestrictions
City could also face multi-window transfer bans preventing them from registering new players, alongside squad-size caps in domestic competitions.
Meanwhile, legal representatives for several Premier League clubs (including Arsenal, Liverpool, Manchester United, and Tottenham Hotspur) are reviewing the redacted core decision published by the Premier League.
If City’s appeal fails, rival teams could seek hundreds of millions of pounds in compensation for lost UEFA prize money, broadcasting revenues, and sponsorship opportunities dating back to 2009.
Frequently Asked Questions (FAQ)
When will Manchester Cityโs punishment be announced?
The independent commission will convene a separate sanctions hearing following the resolution of the appeal process. A final decision on penalties is expected later this year or early 2027.
Can Manchester City appeal to the Court of Arbitration for Sport (CAS)?
No. Unlike UEFA cases, Premier League rules do not recognise the jurisdiction of CAS. Appeals are handled entirely by an internal Premier League Appeals Panel, with further challenges restricted to the London High Court under arbitration law.
Will Manchester City lose their Premier League trophies?
Stripping titles is a legal option available to the commission, but no official decision has been made. The sanction hearing will evaluate whether title stripping, points deductions, or expulsion is appropriate.
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With inputs from agencies