Manchester City guilty: Premier League rules on sham deals 2026

Key Points

• An independent commission has ruled that Manchester City was in breach of all major charges brought against it for the period of breaches of financial regulations set out by the Premier League from 2009-10 until 2017-18 season.
• According to the commission, the club made use of “sham” contracts and agreements with commercial partners to create a false image of income and reduce cost of more than £900m.
• Manchester City has presented the accounts which were not accurate in terms of source of funding as the sponsors paid part of the fee while the rest was covered by Abu Dhabi United Group, according to the commission.
• Premier League stated that had it been the true accounts, the team would have been well beyond the spending limit set by the Premier League and UEFA.
• Manchester City feels disappointed and surprised at the ruling and claims its innocence and an intention to appeal against it; however, the deadline for appeal filing is till Friday.
• Potential sanctions may include points deduction, fine, stripping off the titles won during the period of 2009-2018 or even relegation; however, the decision is still not taken.

Manchester Sports (Manchester Mirror) September 30, 2026 — The Premier League has confirmed that Manchester City FC has been found guilty of all charges related to serious breaches of its financial rules over a nine-season period, in a ruling that threatens the status of one of English football’s most decorated clubs. An independent commission, appointed to adjudicate more than 100 charges brought by the league, concluded that the club operated a disguised funding scheme involving “sham” sponsorship contracts that artificially boosted income and reduced costs by over £900 million between 2009-10 and 2017-18.

What did the independent commission find about Manchester City’s finances?

As set out in the Premier League’s statement, the independent commission found that Manchester City arranged “sham” contracts which misrepresented the true agreement between the parties—with a number of commercial partners, and relied on “sham” agreements with others, to inflate revenues and cut costs. The commission determined these deals formed part of a disguised funding scheme in which sponsors were only required to pay a portion of the relevant sponsorship fees, with the balance funded by Abu Dhabi United Group Investment & Development Ltd, the entity that owned the club.

The Premier League said the purpose of the schemes was to artificially inflate the club’s revenues and reduce its costs by more than £900 million during the affected period, to appear to comply with financial rules. According to reporting by The Athletic, the independent regulatory body’s judgment described the conduct as involving “sham payments” and misstated accounts that concealed the true state of City’s finances. ESPN reported that the violations included failing to provide accurate financial information and submitting inflated figures for sponsorship deals out of Abu Dhabi, while hiding payments and breaching Premier League and UEFA spending limits designed to ensure clubs do not spend beyond their means.

How has Manchester City responded to the guilty verdict?

Manchester City has said it is “disappointed and surprised” by the verdict and reiterated its innocence. In a statement released shortly after the Premier League’s announcement, the club said it remained innocent of the accusations and pointed to what it described as a comprehensive body of irrefutable evidence in its defence. The Abu Dhabi-owned club has signalled it will appeal the decision and has until Friday to do so, vowing to be “relentless, and where necessary proactive, in any and all appropriate regulatory and legal forums”.

In a leaked video of Manchester City CEO Ferran Soriano addressing staff, he described the claims as a “conspiracy theory”, according to CNBC. Sky Sports noted that, despite the guilty findings, City strongly maintain their innocence and contest the commission’s conclusions.

What sanctions could Manchester City face after the ruling?

The Premier League has not yet announced the specific sanctions that will follow the guilty findings, leaving a range of potential penalties under consideration. Speculation has focused on possibilities including a substantial points deduction, a large fine, the forfeiture of titles won between 2009 and 2018 the period covered by the charges—or even relegation to the Championship, the second tier of English football.

BBC Sport reported that Premier League clubs are seeking legal advice on whether they would have a compensation claim over the Manchester City case, reflecting the broader sporting and commercial implications of the breaches. Sky Sports outlined that the next steps include an appeal process and a separate hearing on punishment, with the independent commission’s findings on liability now established.

What are the wider implications for the Premier League and English football?

The ruling arrives after more than two years since the hearing began and follows the Premier League’s decision in February 2023 to charge City with more than 100 breaches. The case has tested the league’s financial governance framework and raised questions about enforcement, deterrence and the integrity of competition over a period in which City established sustained domestic dominance.

CNBC noted that UK Prime Minister Andy Burnham, who recently attended an Everton game with Canadian Prime Minister Mark Carney, could come under pressure to help secure a solution to the City case, given the diplomatic and economic dimensions of Abu Dhabi’s involvement. Simon Chadwick told CNBC that a “middle way” might involve an outcome between strict enforcement of the rules and the preservation of important politico-economic and diplomatic relations.

Background to the Premier League’s financial rules and the Manchester City case

The Premier League’s financial rules are designed to promote sustainability and fair competition by requiring clubs to operate within their means and submit accurate financial information. The charges against Manchester City, first brought in February 2023, centred on allegations that the club inflated sponsorship revenue from connected companies and made other “off the books” payments to circumvent those rules. The independent commission’s remit covered the nine-season period from 2009-10 to 2017-18, during which City won multiple Premier League titles following the 2008 acquisition of the club by Sheikh Mansour bin Zayed Al Nahyan’s investment vehicle. The commission’s findings on “sham” contracts and misstated accounts directly engage the core objectives of the league’s financial regulations, which seek to prevent clubs from gaining competitive advantage through undisclosed funding.

Prediction: how could this development affect Premier League clubs, fans and the sport’s governance?

For Premier League clubs, the verdict could reshape competitive balances and prompt further legal action, including potential compensation claims linked to past seasons in which City’s results and prize money were influenced by the breaches. For fans, the prospect of title forfeiture or other retrospective sanctions raises difficult questions about the legitimacy of past achievements and the meaning of sporting records. For the league’s governance, the case will likely drive tighter monitoring of commercial deals, more rigorous audits of related-party transactions, and clearer deterrents to discourage future breaches. If sanctions are perceived as too lenient, confidence in the rules could be undermined; if they are seen as too severe, appeals and litigation could prolong uncertainty.