An independent commission ruled the champions used 'sham' contracts to inflate revenue and cut costs by more than £900m across nine seasons.
Manchester City have been found guilty of every charge over serious breaches of Premier League financial rules, with an independent commission ruling the club used "sham" contracts to inflate its revenue and cut its costs by more than £900m across nine seasons.
In a redacted 40-page "core decision" published by the Premier League, the commission found that between 2009-10 and 2017-18 City operated what it called a "disguised funding scheme" worth £830.6m. Sponsors paid only part of their fees, with the remainder funded by Abu Dhabi United Group (ADUG), the club's owner at the time.
The purpose of these schemes was found to have been 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.
The club also filed misstated accounts and concealed the true state of its finances from its auditors and football regulators, the commission found. Had the arrangements been reported accurately, City would have breached the league's and UEFA's spending limits by what the Premier League called "a very substantial amount."
Richard Masters, the Premier League's chief executive, called the case "the most significant in Premier League history." "The core decision establishes the facts of what happened at Manchester City during this period," he said. "It details how the club systematically broke Premier League rules for nearly a decade."
City deny any wrongdoing and have until Friday 2 October to appeal. Chief executive Ferran Soriano, in a video sent to staff and players, called the process a "Premier League conspiracy theory" and insisted there was "irrefutable evidence" the money did not come from the owner.
Pep Guardiola, who won six Premier League titles with the club before leaving last summer, stood by his former employer. "I am, always have been, always will, be behind my club, my owner, my chairman," he wrote. Former City defender Micah Richards said he felt "absolutely devastated", while Jamie Carragher argued the titles should be stripped.
The commission found the club made "concerted efforts to stop and frustrate" the investigation, upholding three of four cooperation-breach charges. The sanction is still to be decided at a further hearing, with points deductions, fines, transfer bans and even expulsion from the Premier League all possible.
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