Manchester City have been found guilty of widespread breaches of the Premier League's financial rules in what has been described as the biggest scandal in the competition's history. An independent commission ruled that the club committed 114 breaches between the 2009-10 and 2017-18 seasons, finding that City used what the League called 'sham' commercial contracts to artificially inflate revenue and understate costs by more than £900 million over nearly a decade.
The guilty verdict follows years of investigation into whether the club circumvented financial fair play regulations. The commission concluded that City provided misleading information about its finances across a nine-year period during which it won three Premier League titles and signed some of the world's best players, laying the foundations for a period of unprecedented dominance of English football. Potential punishments under consideration include a massive fine, points deductions, stripped titles, relegation, or even expulsion from England's top flight, though any sanctions are expected to be announced early next year.
City, owned by Sheikh Mansour bin Zayed Al Nahyan, the deputy prime minister of the United Arab Emirates and a member of Abu Dhabi's royal family, have denied any wrongdoing and have filed an appeal seeking to overturn the verdict. The club claims to have a 'comprehensive body of irrefutable evidence' supporting its innocence.
The fallout has spread across football's governing structures. David Kogan, chair of the new Independent Football Regulator, said this week he would resign if there were any political interference in potential sanctions for the club. The regulator has powers to force club owners to sell and can withhold a licence to operate if owners are deemed unfit. Kogan said the body had come under 'absolutely no political pressure whatsoever' and that he did not expect to in future. His comments came after Prime Minister Andy Burnham said he would be 'really concerned' to lose City's current ownership, while insisting he would not get directly involved in the process.
Culture Secretary Lisa Nandy told talkSPORT that the government will not intervene in decisions regarding the case, and confirmed the regulator has the power to remove owners if necessary. Premier League clubs are understood to fear political interference given the UAE's status as a major investor in the UK.
Britain's tax authority, HMRC, has declined to say whether it is investigating City's finances, citing taxpayer confidentiality. The chair of parliament's Treasury Committee, Meg Hillier, had asked HMRC's permanent secretary what action was being taken in response to the commission's findings. HMRC said it works constructively with bodies within football and considers action where information indicates a potential tax risk. It added that it had conducted 68 inquiries involving football players, agents and clubs, generating £110 million in additional revenue in 2025-26.
Rival clubs are now calculating what City's rule-breaking cost them. Analysis reported by the BBC estimates that Tottenham Hotspur missed out on almost £120 million by finishing behind City during the period in question, while Arsenal and Chelsea lost out on £30.9 million and £45.8 million respectively. Spurs finished one place outside the Champions League positions on four occasions while City qualified for Europe's top competition. Overall, the report claims Tottenham missed out on a possible £119.9 million.
City's appeal is pending, and the club maintains its position that the charges will be overturned.