Man city broke rules with ‘sham’ contracts, league finds

The Premier League said Manchester City artificially boosted its financial results by more than £900 million ($1.2 billion), with the club guilty of all charges related to serious breaches of financial rules.

An independent commission found Manchester City arranged “sham” commercial deals with sponsors between 2009-10 and 2017-18, where the companies were only required to pay a portion of the fees. The remaining funding came from Abu Dhabi United Group Investment & Development, which has owned the club since 2008.

The long-running probe has hung over the Premier League and is likely to have seismic implications for the competition and one of its biggest clubs, which became a serial champion after its takeover by a company backed by Sheikh Mansour bin Zayed Al Nahyan, the brother of the UAE’s president.

Its sporting success helped it become a trophy asset for its owners, projecting Emirati soft power far beyond the financial outlay.

“This disciplinary case, and this decision, are the most significant in Premier League history,” Premier League Chief Executive Officer Richard Masters said.

The league said sanctions will be determined separately during a subsequent hearing before the independent commission. Manchester City has the right to appeal the commission’s findings until Oct 2.

Manchester City, known for star players over the years including Sergio Aguero, Kevin De Bruyne and current striker Erling Haaland, has struck a defiant tone throughout the process and repeatedly said it would prove its innocence.

“The club is innocent of the accusations made by the Premier League and a comprehensive body of irrefutable evidence exists in support of all of its positions,” Manchester City said Tuesday.

The statement is confirmation of news that emerged last week, that Manchester City had been found by the independent panel to have committed more than 100 breaches of Premier League rules. Punishments could include a points deduction in the standings, a fine, or even expulsion from the Premier League.

By boosting its revenue and lowering its expenses, Manchester City would have had more room within the Premier League’s limits — which are based on the team’s financial performance — to spend on players.

The Premier League also attacked the conduct of the club, accusing it of making “concerted efforts to stop and frustrate the investigation.”

Main points from the commission’s findings:

• Following a 42-day hearing and evidence from 27 factual witnesses and experts, the commission’s report concluded that some important Manchester City witnesses gave false and, in certain cases, knowingly dishonest evidence.
• Over £830 million of owner funding from ADUG was improperly presented as commercial sponsorship income, while certain expenses and liabilities were left out.
• Manchester City used Abu Dhabi-linked sponsorship agreements to present ADUG equity funding as commercial revenue.
• Even once the accounts were corrected, the commission found Manchester City failed both UEFA requirements and Premier League profitability and sustainability rules in every charged season.

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