Manchester City has been found guilty of more than 100 financial breaches, including arranging “sham” contracts, in a case that has become one of the biggest scandals in Premier League history.
The football giant was accused of more than $1.7 billion in financial wrongdoing, including allegedly inflating the value of sponsorship deals with Abu Dhabi-linked companies.
Here is what you need to know.
Context
In February 2023, Manchester City was referred to an independent commission and charged with 115 alleged breaches of the Premier League’s financial rules.
The referral followed a four-year investigation by the English Premier League.
At the time of the referral, Manchester City said it was “surprised” by the allegations and welcomed the review.
Now, three years on, the club has been found guilty by the commission of 114 of the 115 charges.
Charges
The charges are that City failed to provide the Premier League with accurate financial information between 2009 and 2018, and failed to cooperate fully with the investigation.
During this period, the club won seven major trophies, including three Premier League titles.
In 2008, the club was bought by Abu Dhabi United Group, which is an investment group owned by Sheikh Mansour bin Zayed Al Nahyan, a member of the Abu Dhabi Royal Family.
The group has stakes in 12 football clubs worldwide, including Melbourne City.
Your contribution ensures The Daily Aus can continue doing the work you love.
I want to give $10 monthly to help TDA keep doing the news.
Your details:
It’s not the first time the club has been in trouble under the group’s ownership.
In May 2014, City was fined £49 million by UEFA, European football’s governing body, for breaching ‘Financial Fair Play’ (FFP) regulations.
The FFP regulations were introduced by UEFA in 2011 to stop clubs spending more than they earn.
Then, in February 2020, UEFA handed the club a two-year ban from the Champions League, over alleged financial misconduct.
That ban was later overturned by the Court of Arbitration for Sport.
What’s next?
While the independent commission has found the club guilty of charges, the sanctions have yet to be decided.
Potential sanctions include a significant fine, a points deduction or even expulsion from the Premier League.
Rival clubs are also reportedly considering legal action to seek compensation for economic losses linked to lost titles, missed opportunities to play in European competitions or relegation from the English Premier League.
Manchester City have denied the charges and are expected to appeal the verdict, meaning there will be another hearing and appeal process.
It’s unclear how long that process will take.
Chairman Khaldoon Al Mubarak said in a statement: “Our confidence and intent in proving the Club’s innocence is just as strong as when this began.”
