The Premier League’s Independent Commission has revealed that Manchester City inflated its commercial revenue by £830.39 million ($1.08 billion) between 2009 and 2018 through “sham contracts” and a “disguised funding scheme,” according to findings published Tuesday. The investigation, led by the league’s regulatory body, found that Abu Dhabi United Group (ADUG), the club’s owner, funneled hundreds of millions of pounds to Manchester City while presenting the funds as commercial sponsorship revenue. The commission stated that the club arranged “sham contracts” with commercial partners to artificially boost revenue and reduce reported costs, violating Premier League financial rules. Premier League chief executive Richard Masters condemned the actions, calling them a “systematic breach of rules for nearly a decade.”
Between 2009/10 and 2017/18, Manchester City declared £949.94 million in commercial revenue from Abu Dhabi-linked sponsors, but only £119.25 million was paid by the sponsors. The remaining £830.39 million, labeled “Tagged Sums,” was directly provided by ADUG. During the 2017/18 season, £134.73 million of the club’s £145.73 million in commercial revenue came from the owners, not sponsors. The commission also found that £360 million in sponsorship fees recorded during City’s Premier League-winning seasons between 2011/12 and 2017/18 was largely fictitious, with only £43 million representing legitimate payments. The findings highlighted deliberate efforts to misrepresent financial arrangements, including modified agreements that inflated sponsorship fees and included payments for events already completed, such as a U.S. tour.
The commission concluded that Manchester City’s financial practices involved “deliberate or reckless conduct” to circumvent Premier League regulations. It noted that the scheme allowed the club to avoid recording what would have been the league’s largest single-season loss in 2009-10. A £9.9 million accounting gap in 2012/13 was “plugged” by altering agreements without consulting Abu Dhabi sponsors. The investigation also found that key club witnesses provided false evidence, with some knowingly offering “untrue and dishonest testimony.” The Premier League confirmed that City was found guilty of nearly all financial-rule breaches between 2009/10 and 2017/18, though one charge related to non-cooperation with the investigation was dismissed. Manchester City has consistently denied wrongdoing and retains the right to appeal the findings.
The revelations have raised significant concerns about the integrity of Premier League financial regulations and the transparency of club ownership. The findings underscore the challenges of enforcing financial fair play rules in elite football, particularly when clubs are backed by wealthy owners. Manchester City’s legal team has yet to issue a formal response, but the club has previously criticized the investigation as politically motivated. The case could set a precedent for how leagues address similar allegations in the future, with implications for global football governance. As the legal battle unfolds, the focus remains on whether the club will face sanctions, including potential relegation or fines, as the Premier League weighs its next steps.