Manchester City Found Guilty of Systematically Inflating Revenue by £830 Million

An Independent Commission found Manchester City guilty of 115 charges, including the use of a disguised funding scheme to inflate earnings by £830 million.

Manchester City’s owners artificially inflated the club's commercial revenue by £830 million ($1.08 billion) between 2009 and 2018, according to findings from an Independent Commission. The Abu Dhabi-owned club was found guilty of all 115 charges for serious financial breaches. Premier League CEO Richard Masters stated the organization systematically broke league rules for nearly a decade through a Disguised Funding Scheme that allowed the Abu Dhabi United Group (ADUG) to directly fund the team while misrepresenting the figures as commercial earnings.

During the 2017-18 season, the club recorded £145.73 million ($192.4 million) in commercial revenue, yet sponsors contributed only £11 million ($14.5 million). The remaining £134.73 million ($178 million) was paid directly by the owners. Over the nine-year period investigated, City declared £949.94 million ($1.25 billion) in total revenue from Abu Dhabi sponsors, but only £119.25 million ($157 million) actually originated from those partners. The Commission identified £830.39 million ($1.08 billion) in "Tagged Sums" paid by ADUG to bridge the gap.

Written findings detailed a 2012-13 incident where a £9.9 million ($13 million) deficit was "plugged" to ensure regulatory compliance. Modified sponsor agreements were generated within days to reflect increased fees and payments for past events or tours without the sponsors being approached. During the timeframe of these breaches, the club secured three Premier League titles and signed players including Sergio Aguero, Kevin De Bruyne, David Silva, and Carlos Tevez.