Man City case: What to know about Premier League's financial controversy

Manchester City is facing one of the biggest controversies in English football after the Premier League ruled that the club breached almost all of the 115 financial charges brought against it.

The league announced the verdict on yesterday (29 September) after a years-long investigation into whether City's Abu Dhabi ownership broke financial rules to help turn the club into one of the world's most successful teams.

Premier League Chief Executive Richard Masters called the case and verdict "the most significant in Premier League history".

The club could face serious penalties, including a points deduction or even expulsion from the Premier League. The sanctions have yet to be decided.

Here is a look at the case:

How the case began

The Premier League brought 80 charges against City in February 2023, covering the period from 2009 to 2018, the first nine seasons after the club came under Abu Dhabi ownership.

The league accused City of providing inaccurate financial information, overstating sponsorship income from Abu Dhabi and failing to disclose payments made to managers and players.

It also accused the club of breaching Premier League and UEFA financial regulations designed to prevent clubs from spending beyond their means.

Another 35 charges related to City's alleged failure to cooperate with the Premier League's investigation from December 2018.

The case was linked to internal emails published by German outlet Der Spiegel. The material, obtained through the Football Leaks website, allegedly showed attempts to hide the true sources of some of City's income.

What the commission found

The independent commission ruled that City committed all of the financial breaches relating to 2009-18 and most of the charges involving its failure to cooperate.

The findings said City used what the commission called "sham" contracts with commercial partners to hide more than £830 million ($1.1 billion) in funding from its Abu Dhabi owners.

The commission also said some witnesses who gave evidence on City's behalf provided information they knew was untrue.

It concluded that the club intended to avoid Premier League rules.

City rejects the findings

City has consistently denied wrongdoing.

The club did not challenge the authenticity of the emails published by Der Spiegel but said they were taken out of context after being hacked or stolen from City Football Group. It described the publication of the material as an attempt to damage its reputation.

After the charges were announced in 2023, City said it welcomed an independent investigation and believed there was comprehensive evidence supporting its position.

City Chief Executive Ferran Soriano again rejected the allegations in an internal message to staff, saying the Premier League's case was based on a false claim that the owners secretly transferred their own money into the club through Abu Dhabi sponsors.

In a statement, City called the commission's findings an "opinion" containing serious errors of law, principle and fact.

The club said it would appeal and continue its efforts to clear its name.

What penalties could City face?

The Premier League said punishment will be considered separately by the same independent commission at a confidential hearing. The timing has not been announced.

City must first submit its appeal by Friday.

Under Premier League rules, possible penalties include a fine, points deduction or expulsion from the league.

Everton received a 10-point deduction in 2023 for breaching financial rules during a three-year period. The punishment was later reduced to six points. City faces a much broader set of allegations, including the charge of failing to cooperate with the investigation.

City's appeal would be heard by a three-member Appeal Panel. Sky Sports has reported that the club could also take the case to the High Court in London if it believes the process was unfair or lacked impartiality.

City has faced UEFA punishment before

UEFA previously accused City of overstating sponsorship income to comply with its Financial Fair Play rules, based on the same documents published by Der Spiegel.

In 2020, UEFA found the club guilty of serious breaches between 2012 and 2016 and imposed a two-year ban from European competitions.

The Court of Arbitration for Sport overturned the ban, ruling that some allegations had not been proven and others were time-barred. It instead fined City 10 million euros ($11.3 million) for failing to cooperate with investigators.

Possible impact on City and Abu Dhabi

The case could have financial consequences beyond any punishment imposed on City.

Several rival clubs have reportedly been considering compensation claims, arguing that they suffered because of City's alleged rule breaches.

A recent precedent involved Everton, which was ordered to pay Burnley more than £35 million ($47 million) after Burnley argued that it would have avoided relegation in the 2021-22 season if Everton had received its financial penalty at the time.

It remains unclear whether City could be stripped of its Premier League titles. The league's rules allow the commission to make "such other order as it thinks fit", potentially leaving that option open.

Relegation could also lead to major changes to City's squad, which includes stars such as Erling Haaland.

The findings could also affect the reputation of Abu Dhabi, whose investment in Manchester City has been described by some commentators as part of a broader effort to increase its influence through sport.

Former City manager Pep Guardiola, who guided the club to many of its titles, said in 2023 that he would leave if the club's owners lied to him.

"I will be out, and you will not be my friend anymore," Guardiola said.