For a long time, Manchester City have been under investigation for major financial irregularities. There were a total of 115 charges. In the past few days, they have been found guilty of all but one of the charges.
It has taken more than two years but a judgement finally appears to have been reached on the 115 charges levelled against Manchester City over breaches of Premier League financial rules.
Following a four-year investigation, City were charged and the hearing finally got under way on 16 September 2024.
While it is not known when the outcome will be officially communicated to the public by the Premier League; it is understood the punishment decided by the panel will be released before any appeal is completed.
City deny wrongdoing but being found guilty on the most serious charges means they could be looking at a points deduction serious enough to relegate them; large fines or even expulsion from the Premier League.
They won three Premier League titles; three League Cups and the FA Cup during the time in question - which ran up to 2017-18.
Meanwhile, Premier League clubs have sought legal advice as to whether they would have a compensation claim.
The serial champions now face the possibility of being relegated from the Premier League, or expelled from the competition altogether, after a verdict in the biggest disciplinary case in the history of the sport was finally delivered.
The charges made against City cover the seasons, 2009-10 to 2022-23 and cover a number of areas, with the most serious relating to claims that the club failed to provide "accurate financial information" to the league during this time. From season 2009-10 to 2022-23 inclusive City won seven Premier League titles; a Champions League; three FA Cups and six League Cups.
A City spokesperson said: "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 that the Premier League board and executive would behave as an independent, impartial and fair-minded regulator, free from partisan influence."
In February 2023, City were charged and referred to an independent commission over alleged breaches that were said to have taken place between 2009 and 2018.
- The charges - relating to Premier League financial rules - are:
- 54x failure to provide accurate financial information from 2009-10 to 2017-18.
- 14x failure to provide accurate details for player and manager payments from 2009-10 to 2017-18.
- 5x failure to comply with Uefa's rules including financial fair play (FFP) 2013-14 to 2017-18.
- 7x breaching Premier League profit and sustainability (PSR) rules from 2015-16 to 2017-18.
- 35x failure to co-operate with Premier League investigations from December 2018 to Feb 2023.
German newspaper, Der Spiegel, published leaked documents, including e-mails purportedly sent between top City executives (some of whom remain at the City Football Group), across several seasons following the club's Abu Dhabi takeover in 2008.
It alleged these showed the club had inflated sponsorship revenue from state-owned airline Etihad and state-controlled telecoms firm Etisalat by disguising direct investment from their holding company (Sheik Mansour's Abu Dhabi United Group or ADUG) as sponsorship income by channelling the funds through the companies' accounts.
This, it was alleged, was a means of meeting FFP (Financial Fair Play) rules introduced by UEFA in 2011 - and PSR (Profitability and Sustainability Rules) brought in by the Premier League in 2012 - limiting clubs' permitted losses.
This followed further allegations of misreporting financial information centred on documents that claimed to show secret 'off-the-books' payments to then manager Roberto Mancini via consultancy fees from a club in Abu Dhabi.
It is also alleged the club gave players more money than was officially going through the accounts so recorded spending was less than it actually was.
City, who have always maintained ADUG is a private fund rather than an arm of the state, refused to comment on any of Der Spiegel's revelations, saying the leaked emails were obtained illegally and they were an "attempt to damage the club's reputation".
City - along with the companies involved - strongly denied breaking any financial rules. But that did not stop both Uefa and the Premier League launching investigations as a result.
The timeline of the case
November 2018: Football Leaks allegations emerge with Der Spiegel publishing claims Manchester City breached FFP rules.
March 2019: UEFA launches a formal investigation off the back of Der Spiegel's findings.
May 2019: City criticise the investigation and launch an appeal process.
November 2019: The Court of Arbitration for Sport (CAS) deems City's appeal inadmissible.
February 2020: UEFA announces a two-year ban for City from European competitions and a €30m fine.
July 2020: City's European ban is overturned after an appeal to CAS.
July 2021: City lose a jurisdiction ruling that allows the media to report the Premier League is continuing to investigate the champions for alleged financial breaches.
April 2022: Der Spiegel publishes a fresh report claiming the Premier League has been investigating the club for three years, providing detailed claims.
February 2023: The Premier League charges City with 115 financial breaches.
September 2024: The start of a 10-week hearing between the Premier League and City on the 115 charges.
February 2025: City manager Pep Guardiola says the club expect to learn the verdict "within one month". Guardiola left the Etihad at the end of last season.
September 2026: Reports emerge that a verdict has been reached, with sources telling the BBC that City have been found guilty of breaking the majority of the charges.
It was never expected the verdict would come complete with the sanctions.
It's now face a waiting game for even that verdict to officially be made public by the independent panel.
It's not known who was on the panel that heard and ruled on the case and that will only come once a written judgment is released.
All options are open to the disciplinary commission:
- Points deduction (immediate or suspended).
- Financial penalties (immediate or suspended).
- Removal from the Premier League.
Being removed from the Premier League would mean City lose their membership and are demoted to a lower division from the end of the season.That could also happen through a points penalty so severe they would effectively be relegated.
The Premier League didn't comment, citing the confidential nature of the case. Club executives are understood to have learned about the outcome following a shareholders’ meeting in central London on Thursday and subsequently signed non-disclosure agreements.
An appeal from City is expected to be a formality.
City's legal team is being led by Lord Pannick KC, who is reported to charge £5 000 an hour for his services. He helped City overturn their two-year European ban in 2020.
However, considering the case is already eight years into this process - and two years beyond the start of the hearing itself - it is impossible to speculate when this could come to an end.
Until now, the case has been watertight; with no media leaks from any of the parties involved.
This is just the latest chapter.
However, while the commission's judgement can be directly appealed against, it is not possible for City to take it to CAS.
I'm happy that this has somewhat come to end. I've constantly had to listen to people talking about this. It grew tiresome to me. I can only assume that this story will run on a daily basis until the appeal is over and done with.
In terms of the punishments, I foresee points be deducted and a huge fine. This seems to be the norm with clubs being punished in such a manner.