Eight years after the investigation began, Manchester City have been found guilty of all serious financial rule breaches brought against them by the Premier League across nine seasons, as well as most of the charges relating to a failure to co-operate.
An independent commission concluded that the club used “sham” contracts to inflate income and reduce costs by more than £900m between the 2009-10 and 2017-18 seasons. It also found that inaccurate accounts had been submitted and that the true state of the club’s finances had been concealed from auditors and regulators.
Manchester City deny the allegations and have confirmed they will appeal. The ruling leaves a series of questions over the club’s next steps and the possible consequences.
When will the appeal begin?
Friday is the deadline for Manchester City to lodge their appeal. Chief executive Ferran Soriano has confirmed the club will do so.
Premier League rules are designed to limit the length of the process. The appeal hearing cannot last more than five days, must be completed within 12 weeks of the original decision and witness and expert evidence cannot exceed 30 pages.
The first potential delay could come in forming the new appeal panel. The chair of the current commission must notify the parties of the proposed members “as soon as reasonably practicable”, with objections allowed within two working days.
Legal experts believe it is unlikely that a final outcome will be reached during the current season. The Premier League has not said whether any punishment would be imposed before the appeal is concluded, although there are indications it wants the process to move quickly.
What happens to witnesses found to have lied?
Paragraph 29(b) of the published ruling says that “some factual witnesses gave evidence at the hearing which they knew to be untrue and were therefore dishonest”.
The witnesses, who appeared on Manchester City’s behalf, have not been named. The Premier League appears to be seeking permission to publish more of the redacted ruling. It said on Tuesday that it had only been authorised to release a redacted version of the commission’s “key findings”.
The league confirmed that the proceedings remain ongoing and that unpublished information is confidential. It said it would publish the full decision “unless prevented from doing so by law”.
The identities of the commission members have also not been disclosed. The reason remains unclear, although further material could be released later and the position may change depending on legal arguments during the continuing proceedings.
Could there be criminal prosecutions?
That remains undecided. Both sides are currently focused on the appeal, and there is no clear equivalent precedent in England.
In Italy, former Juventus officials, including former president Andrea Agnelli, received suspended prison sentences in a case involving financial accounts. Agnelli was sentenced to 20 months, while former Juventus sporting director Fabio Paratici, who was Tottenham’s football director at the time, received a 14-month sentence.
Could rivals claim compensation?
Arsenal, Manchester United, Tottenham and Liverpool have lodged legal claims to ensure their rights do not expire if Manchester City are found liable.
One possible argument is that the alleged breaches prevented rival clubs from qualifying for European competitions. Tottenham may have a strong case, having finished one place outside the Champions League qualification positions in four seasons between 2009 and 2018, with Manchester City above them. Its potential claim has been estimated at about £200m.
Claims could also concern indirect losses, such as a club being unable to sign a player of a particular standard because of its financial or sporting position.
An independent arbitration panel would probably decide the amount of compensation, as happened when Burnley received £35m from Everton in June for a breach of profitability and sustainability rules. The four claims could be heard together to save time, although each club may prefer an individual case.
Compensation is considered very unlikely to affect Manchester City’s future financial accounts, because that could create a cycle of further breaches each year and amount to double punishment.
Could UEFA reopen the case?
UEFA will wait for the full outcome before deciding whether to act. However, according to information reported by the Daily Mail, it is highly unlikely to reopen the matter.
That is partly because of the Court of Arbitration for Sport ruling in 2020, which overturned Manchester City’s two-year ban from European competitions. CAS upheld some of UEFA’s findings but rejected others as time-barred. Manchester City were fined €10m and the European ban was removed.
What about the period after 2018?
The Premier League could, in theory, investigate Manchester City’s accounts after 2018. The question is whether it would want to begin another inquiry after the time, effort and cost involved in the current case.
For now, there is a feeling within the league that the ruling validates its position. That confidence is expected to grow if Manchester City lose their appeal.
What if Manchester City are relegated?
The English Football League has not commented, but rule 11.6.2 appears to cover such a situation.
If a points deduction sent Manchester City down only to the Championship, the club would simply be relegated there. If the punishment took them as far as League Two, the process would be more complicated. They would first need to apply to the Football Association to re-enter the English football pyramid.
If that application were approved, Manchester City’s absence would mean one extra club being promoted from each level of the EFL in the following season to fill the vacancy created in the Premier League.
What does the ruling mean for Omar Berrada?
Moroccan businessman Omar Berrada is now Manchester United’s chief executive. He joined the club in 2024 from Manchester City, where he had held several executive positions since 2011, including chief operating officer.
Manchester United have declined to comment. However, it would be difficult to imagine the club failing to carry out appropriate due diligence before appointing Berrada, particularly as the charges against Manchester City had been made public almost a year earlier.
The ruling is not the end of the matter. Manchester City must appeal by Friday, the final punishment has not been announced, and the eventual outcome could lead to fines, a points deduction or more serious sporting sanctions. Claims from rival clubs and possible action by UEFA or other bodies remain separate issues.
