Manchester City found guilty of breaching Premier League financial regulations

Manchester City have not denied that they have been found guilty in the vast majority of the 115 charges brought against them by the Premier League.

>An independent panel has found City guilty of 114 of the 115 counts of breaking the Premier League's financial rules. A statement from the club insisted that "significant elements" remain to be completed in the Premier League's process, which began in February 2023. "The Premier League process remains ongoing, with significant elements to be completed, and subject to strict confidentiality. As such, Manchester City FC's position remains consistent with the club's statement of February 2023.

>"The club has diligently respected due process for eight years on the basis the Premier League board and executive would behave as an independent, impartial and fair minded regulator, free from partisan influence."

>The charges, 115 accusations of financial wrongdoing, of which 114 have returned guilty verdicts, relate to alleged breaches of the league's financial rules between 2009 and 2018, initially reported in German newspaper Der Spiegel. Allegations included off-the-books payments to former manager Roberto Mancini and sponsorship deals that were backdated and manipulated. City have consistently denied all charges against them. It has long been expected that they would appeal any guilty verdict.

>News of the guilty verdict was first reported by The Athletic.

>Since City were taken over by the Abu Dhabi United Group (ADUG) in September 2008, they have been by far the most successful club in English football. Eight of the 10 top-flight titles they have won have come under current ownership, as well as half of their eight FA Cups, seven of nine EFL Cups and the 2023 Champions League title and associated Treble that is the crowning moment in the club's history. Three of their league titles came during the period to which the charges related, including their first under Pep Guardiola, the head coach whose decade-long stewardship established City as one of the leading clubs in Europe.

>Fifty of the 115 charges relate to a failure to disclose sponsorship income between the 2009-10 and 2017-18 seasons, specifically relating to deals with Etisalat and the Etihad, both of which are owned by the Abu Dhabi state. These were also the subject of a UEFA investigation which concluded that telecoms firm Etisalat had paid less than 10% of a £16.5 million sponsorship deal, the rest covered by ADUG. City successfully appealed against UEFA's sanction over this case, the Court of Arbitration for Sport ruling that European football's governing body had not brought the charges soon enough.

>Non-cooperation with the Premier League's investigations also makes up 30 of the charges -- these relate to the period 2018-19 to 2022-23 -- and a further 25 are related to the Premier League's Profit and Sustainability Rules (PSR). Five relate to UEFA's own financial regulations.

>The remainder relate specifically to City's playing and coaching staff. Der Spiegel alleged that Mancini received consultation fees from Al Jazira Club, with whom City share ownership, while there were further alleged payments made to players including Yaya Toure. City deny all the charges.

>Until there is public acknowledgement of the state of play from either the Premier League or Manchester City, this process will continue to play out away from public view. The league is not currently expected to issue a statement on the matter at this time, according to sources familiar with the matter, as they regard it as a private process. City are expected to appeal the verdict while the matter of sanctions remains outstanding.

>There are no specifically detailed sanctions within the Premier League rulebook for the rule breaches of which City have been alleged and reportedly found guilty on all but one count. If, indeed, it is confirmed that City committed 114 of the 115 acts, then that would include charges that amount to ownership funnelling money into the club, an extremely serious breach.

>Rule W.51 sets the terms of a potential sanction, including "compensation unlimited in amount," suspension, points deduction or indeed the expulsion of the club from the league. These sanctions can be applied in any combination alongside "such other penalty as [the commission] shall think fit." In short, anything could happen to Manchester City, and it should be noted that expulsion from the Premier League would not result in the club automatically dropping down a division. They would be obliged to apply for membership to the English Football League or indeed any other tier of the English game.

>The PSR breaches that make up part of City's charges have been the subject of sanctions in the Premier League in recent years. Everton were first given a 10-point deduction, reduced to six on appeal, for breaching the regulations over a three-year cycle up to and including the 2021-22 season. Nottingham Forest received a four-point deduction in March 2024 due to their breach. Both of these instances were referred to as minor breaches by the independent disciplinary panel. Leicester City were another club charged over spending limits but successfully navigated their way out of a sanction due to their relegation from the Premier League, an avenue that would not be available to City.