Manchester City could face a range of sanctions, including a fine, points deduction, transfer restrictions, relegation or even expulsion from the Premier League, after the league found the club guilty of breaching financial rules over almost a decade.
The Premier League confirmed on Tuesday that an independent commission had ruled against City over financial violations dating from 2009 to 2018. The case centres on allegations that the club disguised funding from its Abu Dhabi ownership as sponsorship revenue.
According to the Premier League’s findings, the club concealed more than £900 million in owner funding through sponsorship arrangements during the period.
How the alleged scheme worked
The league found that City reported sponsorship payments from several companies, many of them based in or linked to Abu Dhabi. However, those companies paid only part of the amounts recorded in the club’s accounts.
The remaining funds were allegedly provided by Abu Dhabi United Group (ADUG), the investment group that owns Manchester City.
According to the commission’s report, Abu Dhabi-linked sponsors paid City £119.25 million between 2009 and 2018, while ADUG provided a further £830.69 million.
The commission also identified other arrangements that it said artificially reduced the club’s reported operating costs, including a scheme involving an agency handling players’ image rights.
The Premier League’s chief executive, Richard Masters, described the findings as a “systematic breach” of the league’s rules over almost a decade.
Why the sponsorship arrangements matter
Financial regulations are designed to prevent clubs from spending beyond the level supported by genuine revenues.
Had the payments from the club’s owners been recorded as owner funding rather than commercial sponsorship income, City could have faced tighter spending restrictions. By recording the money as sponsorship revenue, the funds were instead treated as commercial income.
The independent commission’s figures show the scale of the difference. In 2017/18, for example, Abu Dhabi-linked sponsors reportedly contributed £11 million, while ADUG provided £134.73 million.
What punishment could City face?
The Premier League’s Rule W64 gives the league a broad range of potential sanctions, from financial penalties and points deductions to expulsion from the competition.
It remains unclear whether previously won Premier League titles could be removed. The rules allow the commission to impose “any other sanction” it considers appropriate, potentially leaving the door open to further measures.
A transfer ban is another possible outcome, although the precise scope and duration would depend on any eventual sanction.
There are few direct precedents for a case of this scale. Everton received a 10-point deduction in 2023 for breaching spending rules over a three-year period, although the punishment was later reduced to six points. Nottingham Forest received a four-point deduction several months later for exceeding the permitted financial threshold by £34.5 million.
UEFA previously sanctioned City
The Premier League case is not the first time City has faced financial allegations.
UEFA accused the club in 2020 of overstating sponsorship revenues between 2012 and 2016 and initially imposed a two-year ban from European competitions.
The Court of Arbitration for Sport (CAS) later overturned the suspension, ruling that some of UEFA’s allegations had not been established and that others were time-barred. City was nevertheless fined €10 million for failing to cooperate with UEFA’s investigation.
Rivals could seek compensation
The case could also have financial consequences beyond any Premier League punishment.
According to Sky Sports, several clubs are preparing potential compensation claims, arguing that they suffered financial losses as a result of City’s alleged breaches.
There is already a relevant precedent. Earlier this year, Everton was ordered to pay £35 million to Burnley after Burnley successfully argued that it would have avoided relegation in the 2021-22 season had Everton received a six-point deduction during that campaign.
The potential consequences for City will depend on the sanctions ultimately imposed and any subsequent appeals.
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