Manchester City Guilty of Serious Premier League Financial Rule Breaches
An independent commission has ruled that Manchester City committed serious violations of the Premier League's financial regulations across a nine-year span. The English club faced accusations of falsifying their accounts through "sham" sponsorship arrangements exceeding £900 million ($1.2 billion) from 2009 to 2018.
The saga, which kicked off almost eight years ago, has now reached a verdict.
In November 2018, the German outlet Der Spiegel reported that City had tried to sidestep UEFA's Financial Fair Play rules by letting their Abu Dhabi-based sponsors provide backdated cash injections. City pushed back, describing the allegations as stemming from an "illegal hack" and the release of internal club emails as an "organised and clear attempt" to tarnish their reputation.
Following those reports, UEFA and the Premier League both initiated probes into possible FFP violations in March 2019.
In May 2019, City made history as the first English team to secure a domestic treble, winning the Premier League, FA Cup, and League Cup.
UEFA imposed a two-season ban on City from European competitions in February 2020 and levied a 30 million euro fine after determining they had committed "serious breaches" of FFP rules. An independent panel concluded that City had inflated their sponsorship income in accounts filed with UEFA from 2012 to 2016. City promptly declared their plan to appeal to the Court of Arbitration for Sport.
By July 2020, City had successfully appealed the two-year ban and seen their fine cut to 10 million euros. CAS determined that most of the reported breaches were either unproven or past the statute of limitations, yet a substantial fine remained due to City's lack of cooperation with the inquiry.
After a four-year probe, the Premier League sent City to an independent commission in February 2023 for over 100 alleged rule violations. These included failing to supply accurate financial details, FFP breaches, violations of profitability and sustainability rules, and non-cooperation with investigations. The club refuted any misconduct and asserted they possessed a "comprehensive body of irrefutable evidence that exists in support of its position". Manager Pep Guardiola stated the club had already been "condemned" but committed to staying as City worked to vindicate themselves.
In June 2023, City became just the second English club to achieve a treble of the Premier League, FA Cup, and Champions League. They claimed their first European title by defeating Inter Milan 1-0 in the Istanbul final.
Everton, in November 2023, became the first Premier League side to have points deducted for breaching Profitability and Sustainability Rules (PSR). Their initial 10-point penalty was lowered to six upon appeal. Everton then received an additional two-point deduction for another violation in the 2022/23 season, and Nottingham Forest were docked four points for a breach in the same season.
City set another record in May 2024 by becoming the first team to win four straight Premier League championships.
The independent commission's hearing got underway in central London in September 2024. By December 2024, the proceedings wrapped up, and the panel withdrew to deliberate on their decision.
In May 2026, Guardiola resigned after a decade in charge, during which he secured 20 trophies.
In September 2026, the verdict declared City guilty on all counts of serious financial rule breaches and on all but one charge of failing to cooperate with the league's investigation. City signalled their plan to appeal.
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