Manchester City found guilty of 'sham' contracts in financial rules case

The Premier League has confirmed that Manchester City were found guilty of all charges related to breaches of financial rules covering the 2009-10 to 2017-18 seasons. An independent commission concluded the club arranged sham contracts with several commercial partners to artificially inflate revenues and reduce costs during that period.

A redacted version of the commission's report was published, showing the case involved well over 100 alleged individual breaches across four broad charge categories. City were found guilty of all charges bar one relating to failure to cooperate with the investigation, and guilty of the majority of charges in that category as well.

A £830m funding scheme

The sham commercial deals were described as part of a disguised funding scheme worth £830.69m. The commission found the sponsorship agreements were either shams or did not reflect their true economic substance, pointing to deliberate or reckless conduct designed to circumvent Premier League rules. The scheme reportedly allowed City to avoid recording what would otherwise have been the largest single-season loss in Premier League history in 2009-10.

Premier League chief executive Richard Masters said the decision establishes the facts of what happened at the club over nearly a decade and vindicates the League's pursuit of the case, stressing the responsibility to uphold rules that keep the competition fair for all clubs and fans.

Manchester City said it was disappointed and surprised by the commission's opinion, maintaining it is innocent and that a comprehensive body of evidence supports its position. The club said it will pursue all available regulatory and legal appeal avenues, arguing the opinion contains material errors of law, principle and fact. The wider Premier League process remains ongoing, with significant elements yet to be completed.