Manchester City has been found to have artificially boosted its revenue by more than $1 billion US over almost ten years, bypassing financial fair-play regulations and enabling the team to recruit top soccer talents, according to a report released on Tuesday. The independent panel’s investigation revealed that the United Arab Emirates-backed club committed over 115 violations, with around 80 occurring between 2009-2018 for financial misconduct and 35 more between 2018-2023 for lack of cooperation.
The Premier League disclosed that City’s financial misconduct, facilitated through questionable commercial agreements, amounted to over 900 million pounds ($1.19 billion US). Premier League CEO Richard Masters stated that City had systematically violated league regulations for nearly a decade, dubbing the ruling as the most significant in Premier League history.
As a consequence, City now faces potential severe penalties, including a substantial point deduction or expulsion from the league, which could significantly damage its reputation under Abu Dhabi ownership. Sanctions will be determined in a separate hearing by an independent commission at a later date, as announced by the Premier League.
Despite the ruling, City has consistently denied any wrongdoing and expressed disappointment over the outcome. The club intends to appeal the decision and emphasized its determination to defend its reputation. City CEO Ferran Soriano refuted the accusations, asserting that the allegations were based on a false premise regarding the club’s financial dealings.
The investigation into City’s financial practices commenced in 2018 following leaked internal documents. The club is accused of providing misleading financial information over a nine-year period, which allegedly included inflating sponsorship deals and breaching financial regulations set by the Premier League and UEFA.
The Premier League stated that City engaged in deceptive practices, including “sham” contracts with commercial partners and misstated accounts to inflate revenues and reduce costs. These actions were purportedly aimed at ensuring compliance with financial regulations while securing the club’s competitive position in English soccer.
The panel’s findings have sparked controversy within English soccer, leading to calls for compensation from rival clubs and discussions about potential repercussions for City’s achievements. The future of key players and the club’s ownership, particularly Sheikh Mansour bin Zayed Al Nahyan, has also come under scrutiny.
City’s ownership of Melbourne City FC, an A-League club in Australia, has raised concerns among league officials who are monitoring the situation closely. The Australian Professional League has refrained from launching an investigation into Melbourne City but remains vigilant amidst the evolving financial landscape in international football.