Manchester City is in one of the most delicate periods of its history. Long considered a model of sporting and economic success since Abu Dhabi investors took over in 2008, the English club is now at the center of a financial scandal that could call into question some of its successes.
The independent commission tasked with examining the Premier League’s accusations delivered a damning verdict, finding the Cityzens guilty on 114 of the 115 charges brought against them. At the heart of the case are notably suspicions of concealing revenue, presenting inaccurate accounts and breaching the English league’s financial rules.
It is a seismic shock for an institution that has dominated the Premier League under Pep Guardiola and won trophies in recent years. While Manchester City firmly contests the commission’s conclusions and has launched an appeal process, the scale of the findings puts the club at risk of potentially historic consequences.
The sanctions mentioned in this explosive case include a points deduction, a heavy fine, or even exclusion from the English top flight. The verdict rests on particularly serious facts, covering nine seasons, from 2009-2010 to 2017-2018.
According to the commission’s conclusions, Manchester City artificially inflated its commercial revenue by more than £900 million by relying on fictitious or misleading sponsorship contracts. Several commercial partners reportedly paid only part of the officially announced sums, with Abu Dhabi United Group, linked to its owner, financing the balance.
The Manchester club thus presented a distorted image of its financial situation, concealed the reality of its accounts from its auditors and football’s governing bodies, while greatly exceeding the spending ceilings allowed by the Premier League and UEFA. The commission also upheld three of the four accusations relating to City’s lack of cooperation during the investigation.
The Premier League publicly confirmed these conclusions on Sept. 29, after several years of proceedings. The Etihad Stadium side, which has announced its intention to appeal, continues to claim innocence and denounce errors of law, principle and fact in the decision. No final sanction has been handed down yet, but the outcome could reshape English football for years.
Manchester City Sought Financial Settlement Before Guilty Verdict, Report Says
Bloomberg’s latest revelation adds a particularly embarrassing episode to the case. According to the U.S. outlet, Manchester City and the Premier League held confidential negotiations toward a possible amicable settlement before the verdict unfavorable to the club was made public. These preliminary discussions could have allowed the Cityzens to considerably limit their exposure to the heaviest sanctions.
The idea reportedly focused on a significant financial payment rather than a possible relegation or stripping of titles. In other words, City could have sought a financial exit rather than expose itself to a case that could threaten its status among the English elite.
But talks quickly failed, Bloomberg said, according to several sources close to the case. The outlet says the discussions had not been previously revealed and that both parties declined to comment.
This attempt at rapprochement inevitably contrasts with the club’s public line of defense, which has claimed from the start to be the victim of unfounded accusations. The breaking point appears to have been the inability to find common ground on the substance of the accusations.
Also, according to Bloomberg, Manchester City maintained its innocence throughout the discussions and refused to accept the Premier League’s grievances.
The prospect of a settlement reportedly did not lead to an acknowledgment of the alleged facts or an agreement to close the case. The talks’ failure led to proceedings with considerable consequences. The negotiations do not establish additional guilt and do not mean that City admitted the facts.
On the other hand, the independent commission’s decision upheld its responsibility for the accusations linked to serious financial breaches, as well as for most of the grievances concerning its cooperation with investigators.
Manchester City, Premier League Held Secret Settlement Talks