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Manchester City have been found guilty of breaching Premier League financial rules after an independent commission ruled that the club used “sham” sponsorship arrangements to conceal more than £830 million in funding between 2009 and 2018.
The commission found that City reported around £949.94 million in sponsorship income during the nine-season period, while only about £119.25 million was actually paid by sponsors.
The remaining £830.69 million was allegedly funded by the club’s owner, Sheikh Mansour’s Abu Dhabi United Group (ADUG), through a disguised funding arrangement.
The Premier League said the arrangements artificially inflated City’s revenues and reduced their reported costs, allowing the club to avoid financial restrictions.
The commission also found that City had overstated image-rights income and understated certain staff-related liabilities.
City were found guilty of 114 of the 115 alleged breaches, according to reports, although the club strongly denies wrongdoing and says the commission’s findings contain serious errors of fact and law. The club has until October 2 to appeal.
No punishment has yet been imposed. Possible sanctions under Premier League rules include a heavy fine, points deduction or expulsion from the league, meaning the case could have major consequences for the club.
The Premier League described the findings as the most significant disciplinary decision in its history.