The independent commission has found Manchester City guilty of breaching the Premier League's financial rules over a period of nine seasons. The league confirmed that the club was found guilty of breaches between the 2009-10 and 2017-18 seasons.
The commission found that City had entered into 'false' agreements with a number of commercial partners between 2009 and 2018. The club relied on these agreements to artificially inflate its revenues and reduce its costs, submitting misstated accounts and concealing the true state of its finances from auditors and regulators. City breached the spending limits set by the Premier League and UEFA, committing multiple breaches of the duty of cooperation during the investigation.
The false commercial deals were described as part of a 'hidden financing' scheme worth £830.69 million. The commission concluded that the club's conduct had clearly sought to circumvent the rules of the Premier League.
The chief executive of the Premier League, Richard Masters, stated that the core judgment established the facts of what had taken place at Manchester City during that period. Masters highlighted that this disciplinary case and its ruling were the most significant in the history of the Premier League. He added that the sanctions were yet to be determined. Speculation is currently mounting regarding the potential penalties, which could range from fines and points deductions to expulsion from the Premier League or the stripping of previously won titles.
The English media report that the club will appeal. The club's chairman, Khaldoon Al Mubarak, told supporters in an open letter that the 'process is far from over'. Al Mubarak stated that the confidence and determination to prove the club's innocence were as strong as they were at the start of the affair. The club denies any irregularity and has until 2 October to lodge an appeal.
The Premier League has published an edited version of the commission's report. The report states that the allegations related to 'more than 100 individual breaches of the Premier League's rules across four broad categories of allegations'. The report further states that 'a number of the Club's witnesses gave false evidence in key areas'.
The commission stated that the 'relevant sponsorship agreements were found to be false, or at least did not reflect their economic substance'. It described 'deliberate or careless conduct aimed at circumventing the rules of the Premier League'. The index of the commission's report contained over 750 pages, while the core bundle of documents 'comprised many tens of thousands of pages'.
The culture, media and sport secretary, Lisa Nandy, told the BBC that the Premier League's report was 'extraordinarily serious' and 'extraordinarily harsh'. David Bernstein, the former chairman, stated that the 'credibility of the Premier League is in question' following the ruling, adding that if the ruling stands and the appeal fails, Manchester City cannot remain in the Premier League.
