Manchester City has been found to have inflated its revenue by more than $1 billion US over almost ten years, violating fair-play regulations to gain an advantage over rival clubs and sign top soccer players, a report revealed on Tuesday. The independent panel, in what is considered a significant scandal in Premier League history, concluded that the team, backed by the United Arab Emirates, committed over 115 violations. These violations included financial misconduct from 2009 to 2018 and non-cooperation with investigations from 2018 to 2023.
The financial irregularities, reportedly achieved through dubious commercial agreements, amounted to more than 900 million pounds ($1.19 billion US). Premier League CEO Richard Masters stated that City had consistently breached league rules for nearly a decade, marking a pivotal moment in the league’s history. As a result, City now faces potential severe penalties, such as a substantial points deduction or expulsion from the league, which could tarnish its reputation under Abu Dhabi ownership.
The league announced that the specific sanctions would be determined in a separate hearing conducted by an independent commission at a later date. Despite denying any wrongdoing, City expressed disappointment with the ruling and announced plans to appeal the decision. The club emphasized its commitment to clearing its name, extending a legal battle that has spanned more than three years.
The controversy stemmed from leaked internal communications in 2018, leading to the initiation of the case by the Premier League. The recent findings revealed City’s alleged misleading financial disclosures from 2009 to 2018. During this period, the club emerged as a dominant force in English soccer, securing titles and acquiring renowned players like Yaya Toure, Sergio Aguero, and Kevin de Bruyne.
The violations included providing inaccurate financial information, inflating sponsorship figures from Abu Dhabi, concealing payments, and breaching financial regulations set by the Premier League and UEFA. These regulations aim to ensure clubs maintain financial stability by not overspending. The panel found City guilty of artificially boosting its revenues and reducing costs by more than £900 million ($1.19 billion US) to comply with financial rules, casting doubt on the club’s achievements through potential regulatory evasion.
The revelations have triggered a wave of backlash within English soccer, with rival clubs demanding compensation for lost revenue, contemplating legal action, and questioning the validity of City’s titles. Uncertainty looms over the future of City’s star players and the ownership by Sheikh Mansour bin Zayed Al Nahyan, a prominent figure in Abu Dhabi’s royal family. City’s parent company, the City Football Group, owns multiple teams globally, including New York City FC and Melbourne City.
As the appeal process unfolds, there are concerns about the implications for Melbourne City FC, a club under the City Football Group since 2014. League officials in Australia are monitoring the situation closely but maintain that it is premature to raise alarms regarding Melbourne City FC. The Australian Professional League asserts that it has not probed the financial affairs of Melbourne City and will assess developments in the legal proceedings before taking further action.
