Manchester City found guilty of 'sham' contracts and misleading accounts

The Premier League has confirmed that an independent commission found Manchester City guilty of almost all charges relating to breaches of the league's financial rules between the 2009-10 and 2017-18 seasons. The case covered more than 100 alleged individual breaches across four broad categories of charges.

The commission concluded that City arranged so-called "sham contracts" with several commercial partners in order to artificially inflate revenues and reduce costs. This arrangement, worth an estimated £830.69m, was described as a "disguised funding scheme." The sponsorship agreements in question were found to be shams, or at least did not reflect their true economic substance, and the commission pointed to "deliberate or reckless conduct" intended to circumvent league rules. As a result, the club reportedly avoided recording what would have been the largest single-season loss in Premier League history in 2009-10. City was also found guilty of most charges relating to a failure to cooperate with the investigation.

Premier League chief executive Richard Masters said the ruling establishes the facts of what happened at the club over nearly a decade and vindicates the league's decision to pursue the case. He stressed that upholding the rules, which are approved by the clubs themselves, is essential to protecting fair and competitive football.

Manchester City said in a statement that it was "disappointed and surprised" by the commission's findings, maintaining that the club is innocent and possesses irrefutable evidence supporting its position. The club said it would pursue all available legal and regulatory avenues, including an appeal, arguing the ruling contains clear errors of law, principle and fact. The wider Premier League process remains ongoing, with significant elements yet to be completed.