In brief
- An independent Premier League Commission has found Manchester City in breach of financial rules over nine seasons, alongside significant failures to cooperate with its investigation.
- The focus now turns to sanction and the club’s intended appeal, with Manchester City strongly disputing the findings.
- The eventual outcome could have far-reaching sporting, commercial and contractual consequences for the club and the wider Premier League.
The Commission’s findings and Manchester City’s response
An independent Premier League Commission has published its long-awaited decision in the disciplinary proceedings against Manchester City FC, finding the club in breach of the Premier League’s financial rules over a nine-season period between 2009/10 and 2017/18.
The Commission found all of the substantive financial charges against Manchester City proven. It also upheld three of the four categories of allegations concerning the club’s failure to cooperate with the Premier League’s investigation. The Commission said the allegations of serious wrongdoing required “strong, cogent evidence” and concluded that, save for one of the cooperation charges, that standard had been met.
Among its findings, the Commission concluded that Manchester City had used arrangements with commercial partners which misrepresented the true agreements between the parties, resulting in the club’s revenues being overstated and its costs understated. According to the Premier League, the Commission found that the arrangements artificially inflated revenues and reduced costs by more than £900 million over the relevant period
The Commission also found that the club filed misstated accounts and would have exceeded both Premier League and UEFA spending limits by a substantial amount had the relevant arrangements been accounted for differently.
The Commission made significant findings concerning Manchester City’s conduct during the Premier League’s investigation. It concluded that the club had made concerted efforts to frustrate that investigation and had breached its obligations of cooperation and utmost good faith in a number of respects.
The Premier League has described the case and the decision as the most significant in its history. Chief Executive Richard Masters said the ruling established what had happened during the relevant period and that the League intended to move swiftly through the remaining stages of the process.
Manchester City strongly disputes the decision. In its response, the club said it was “disappointed and surprised”, maintained that it is innocent of the allegations and said the decision contains material errors of law, principle and fact. The club has confirmed that it intends to pursue the available appeal routes.
What happens next?
The decision does not determine Manchester City’s punishment.
Sanction will be considered separately at a further private hearing before the Commission. Under the Premier League Rules, the Commission has broad discretion, with potential sanctions including financial penalties, points deductions and other sporting sanctions.
Any appeal will add a further stage to a process which began with the Premier League’s investigation in 2018 and culminated in a 42-day substantive hearing in 2024.
The ultimate sporting, commercial and contractual consequences for Manchester City and the wider Premier League will therefore depend both on the sanction imposed and the outcome of the appeal process.
Comment
Kavan Bakhda, Head of Sports at Mishcon de Reya, commented:
“The publication of the Commission’s decision marks a significant moment, but it is not the end of the process. Attention will now turn to sanction and to Manchester City’s appeal.
“The Commission has a broad discretion as to sanction and, given the seriousness of its findings, the consequences could be substantial. However, it would be premature to assume what punishment will ultimately be imposed, particularly while the appeal process remains to be played out.
“The eventual outcome could also have significant consequences beyond the club itself, including for players, other Premier League clubs and the wider regulatory landscape in English football.”