Premier League Finds Manchester City Used Sham Contracts to Inflate Revenue

Manchester City has been found to have used "sham" commercial contracts that misrepresented agreements with sponsors, inflating revenue and reducing reported costs by more than £900 million over nine seasons, the Premier League said on Tuesday. The independent commission determined the club breached all charges related to financial rules between the 2009-10 and 2017-18 campaigns and failed to cooperate fully with the investigation.

The report said several sponsors paid only part of the fees recorded, with the balance supplied by the club’s owner, Abu Dhabi United Group Investment & Development Ltd, while other arrangements funded by the owner allowed lower operating expenses to be recorded. The commission also found that some club witnesses gave false evidence during the 42-day hearing.

Premier League chief executive Richard Masters said the decision shows the club “systematically broke Premier League Rules for nearly a decade” and described the case as the most significant in the league’s history. He added that the league will move swiftly through the remaining process to provide certainty for clubs and fans.

Manchester City issued a statement saying it is “innocent of the accusations” and will appeal, arguing the commission’s opinion contains material errors of law, principle and fact. The club has until Friday to lodge the appeal. Chief executive Ferran Soriano told staff that the case rests on “a single false accusation” that the owner’s personal money was secretly injected via sponsors, which he said is not true.

British sports minister Lisa Nandy called the league’s report “incredibly stark” and urged a swift, fair conclusion to protect the integrity of the game. Sports-law barrister Yasin Patel said the club is expected to fight the ruling vigorously.