Manchester City has been found guilty on all serious financial charges related to breaches of Premier League rules between the 2009-10 and 2017-18 seasons. The independent commission ruled that City breached the rules, and the club has announced it will appeal the findings by Friday October 2.
The verdict centres on a scheme the commission called a ‘Disguised Funding Scheme,’ in which Abu Dhabi United Group (ADUG) partially funded sponsorship fees from Abu Dhabi sponsors. The club’s financial statements showed £949.94m commercial income from Abu Dhabi sponsors, while sponsors actually paid £119.25m, with ADUG covering the remaining £830.69m.
The Disguised Funding Scheme
City’s financial statements for those nine years did not show a true and fair view of the club’s financial position. The commission found that City’s explanation of sponsor behaviour had been “concocted well after the event in an attempt to obscure and conceal the realities of the Disguised Funding Scheme.” That finding stands at the heart of the case against the club.
In May 2013, City generated amended sponsorship agreements recording additional Abu Dhabi sponsorship income without approaching the sponsors. The commission described ‘The Fordham Arrangement’ as “little more than a front for ADUG” and part of Project Longbow.
Three separate remuneration agreements omitted from City’s accounts and paid for by ADUG were worth nearly £17m. The Fordham Arrangement overstated income by £24.5m and understated expenses by £49.414m.
One element of the Premier League’s non-cooperation case was not proven.
Witnesses and Resistance
The commission heard from 27 witnesses over 42 days in the last quarter of 2024, with many tens of thousands of pages of documents. The commission found some City witnesses gave false evidence and others were found to have given knowingly untrue evidence.
City made concerted efforts to stop and frustrate the investigation. The Premier League said City’s conduct involved “extremely serious, significant, sustained and intentional or reckless breaches of rules.”
The commission ruled City “clearly intended to circumvent the PL rules.”
The Numbers Behind the Verdict
- £949.94m: commercial income from Abu Dhabi sponsors shown in City’s financial statements
- £119.25m: amount sponsors actually paid
- £830.69m: amount covered by ADUG
- £17m: total value of three remuneration agreements omitted from City’s accounts
- £24.5m: Fordham Arrangement overstated income
- £49.414m: Fordham Arrangement understated expenses
These figures tell the story of how the scheme worked. The difference between the £949.94m recorded in City’s statements and the £119.25m actually paid by sponsors is the core gap in the arrangement, with ADUG covering the remaining £830.69m.
Comparing the Figures
| Figure | Amount |
|---|---|
| Sponsorship income shown in statements | £949.94m |
| Amount sponsors actually paid | £119.25m |
| Amount covered by ADUG | £830.69m |
The appeal deadline is Friday October 2. Until then, the findings stand as the commission’s ruling.
The case has raised questions about the role of outside investors in professional sports. ADUG’s payments through Fordham and the Disguised Funding Scheme allowed the club to overstate income and hide losses across nine seasons.
City has until October 2 to make its case. Whether the appeal succeeds, the record shows the scale of the arrangement: nearly a billion pounds of income was reported, while sponsors paid less than a tenth of that amount.
See the video the story is built around at Sky Sports.
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