Manchester City have been found guilty by an Independent Commission of serious breaches of Premier League financial rules, following a process relating to nine seasons, from 2009/2010 to 2017/2018.
The Premier League confirmed today that the Commission has found the club liable for all charges relating to serious financial misconduct, while City has also been found guilty of three out of four charges of failing to cooperate with the investigation.
The Commission found that Manchester City used fictitious agreements to misrepresent sponsorship revenue and reduce declared costs, resulting in a financial loss of more than £900 million over the period investigated.
Part of the issue relates to commercial agreements with sponsors, where the companies paid only part of the declared amount, while the rest, according to the Commission, was financed by Abu Dhabi United Group (ADUG), the company that controls the club.
The Commission also found that other arrangements were used to present the club's operating costs as lower than they actually were. In this context, the agreement with Fordham, the entity that had acquired the image rights of Manchester City footballers and which, according to the Commission's findings, was linked to funding from ADUG, was also examined.
The Premier League investigation focused on the period 2009/2010-2017/2018 and included 115 charges, including allegations of inaccurate reporting of income and payments, breaches of UEFA rules and the Premier League's Profitability and Sustainability Rules, as well as failure to cooperate with authorities during the investigation.
Transfers during the period under investigation
The period in question coincides with a phase of Manchester City's major investments in the transfer market, during which the club brought in a large number of players who later became part of the successful team of the following years.
In the 2009/2010 season, City spent around €147.3 million on transfers, with the main purchases being Carlos Tevez for €29 million, Emmanuel Adebayor for €29 million and Joleon Lescott for €27.5 million.
A season later, in 2010/2011, the spending reached around 183.6 million euros. The club transferred Edin Dzeko for 37 million euros, Yaya Toure for 30 million, Mario Balotelli for 29.5 million and David Silva for 28.75 million euros.
In 2011/2012, Manchester City invested around 91 million euros, with Sergio Aguero arriving from Atletico Madrid for around 40 million euros and Samir Nasri for 27.5 million.
In 2012/2013, the expenses were around 62 million euros, while the main transfer was Javi Garcia, for around 20 million euros.
In 2013/2014, City spent around €115.5 million, bringing in Fernandinho for €40 million, Stevan Jovetic for €26 million and Alvaro Negredo for €25 million.
In 2014/2015, spending amounted to around €102.8 million. Among the main transfers were Eliaquim Mangala for €45 million and Wilfried Bony for €32.3 million.
Spending increased significantly in 2015/2016, when City invested around €208.5 million. Kevin De Bruyne was transferred for around €76 million, Raheem Sterling for €64 million and Nicolas Otamendi for €44.5 million.
In 2016/2017, the club spent around 216.3 million euros, with John Stones for 56 million, Leroy Sane for 52 million, Gabriel Jesus for 32 million and İlkay Gundogan for 27 million euros.
Meanwhile, in 2017/2018, the last season of the period under review, Manchester City spent around 317.5 million euros. The club brought in Aymeric Laporte for 65 million, Benjamin Mendy for 58 million, Kyle Walker for 52.7 million, Bernardo Silva for 50 million and Ederson for 40 million euros.
Manchester City have denied wrongdoing and have contested the Commission's decision. The club has stated that the process is ongoing and that it will exercise its right to appeal, claiming that the decision contains legal and factual errors.
Meanwhile, the Premier League has yet to determine the final sanctions. The case is expected to continue through the appeals process, with a decision on the measures against the club to be taken at a later stage.
