Manchester City has been found to have inflated its revenue by more than $1 billion US over a span of almost ten years, bypassing fair-play regulations that limited other clubs and enabling the team to bolster its squad with renowned soccer players, according to a report published on Tuesday by an investigatory panel.
The independent panel, in what is considered a major scandal in Premier League history, concluded that the team backed by the United Arab Emirates committed over 115 violations, with around 80 occurring from 2009 to 2018 related to financial misconduct and another 35 from 2018 to 2023 for alleged lack of cooperation during the investigation.
City’s alleged financial impropriety, facilitated in part through what the league described as deceptive commercial agreements, amounted to more than 900 million pounds ($1.19 billion US). Premier League CEO Richard Masters stated that the ruling exposed City’s systematic violation of league regulations over nearly a decade.
The club now faces potential severe penalties, including significant point deductions or even expulsion from the league, which could severely damage its reputation under Abu Dhabi ownership.
Sanctions will be determined in a separate hearing by an independent commission at a later date, as stated by the Premier League.
City has consistently denied any wrongdoing and expressed disappointment and surprise at the ruling. The club intends to contest the verdict and emphasized its determination to clear its name, prolonging a case that has spanned over three years.
The initial allegations emerged in 2018 from leaked internal communications, leading to the Premier League launching an investigation over three years ago. The recent findings follow indications from last week that the accusations against City were likely to be upheld following an extensive process.
City is accused of providing misleading financial information from 2009 to 2018, a period that saw the club rise in prominence, win multiple titles, and sign star players like Yaya Toure, Sergio Aguero, and Kevin de Bruyne.
The violations include inaccurate financial reporting, inflated sponsorship figures from Abu Dhabi, concealment of payments, and breaches of financial regulations set by the Premier League and UEFA to ensure clubs operate within sustainable financial means.
City’s alleged misconduct involved deceptive contracts with commercial partners and misrepresented revenue to comply with financial rules, impacting the club’s ascent in English football by sidestepping financial regulations.
The panel’s findings have sparked controversy in English soccer, with rival clubs seeking compensation, fans and players questioning City’s titles, and uncertainties surrounding the future of key players and ownership.
City has consistently maintained its innocence, citing substantial evidence supporting its position. The appeal process may escalate to the High Court in London if City perceives unfair treatment during the case.
In Australia, league officials are monitoring the situation, with Melbourne City FC, owned by the City Football Group since 2014, under scrutiny. The Australian Professional League is awaiting further developments before expressing concern regarding Melbourne City FC’s financial status, emphasizing the interconnected nature of the international football economy.