The Premier League have broken their silence and issued a statement about Manchester City's 114 guilty charges of breaching financial rules.
City were found guilty of 114 of the 115 charges brought against the club related to serious breaches of the Premier League's financial regulations between 2009 and 2018 on Friday. The Premier League until now were yet to comment on the matters.
Premier League statement on Man City verdict
But a statement has been published on the league's website regarding City's verdict, which states the club have been found guilty of all charges: "An independent Commission has found Manchester City FC guilty of all charges related to serious breaches of the Premier League’s financial rules over a nine-season period, and the majority of charges in relation to its failure to co-operate with the League’s investigation.
"The independent Commission found that between Seasons 2009/10 and 2017/18: Manchester City arranged ‘sham’ contracts (which misrepresented the true agreement between the parties) with a number of its commercial partners, as well as relying on ‘sham’ agreements with others, to artificially inflate the club’s revenues and reduce its costs.
"The club filed misstated accounts and concealed the true state of its finances from its auditors and football regulators.
"Manchester City was significantly in breach of both the Premier League’s and UEFA’s spending limits.
"During the Premier League’s investigation, Manchester City committed multiple breaches of its duties of co-operation and utmost good faith towards the League (three of the four alleged breaches were upheld)."
Sham commercial deals and disguised funding scheme
The statement continued: "The independent Commission found that Manchester City arranged ‘sham’ commercial deals with a number of its sponsors during the period, which were part of a disguised funding scheme, whereby those companies were only required to pay a portion of the relevant sponsorship fees.
"The remainder was funded by Abu Dhabi United Group Investment & Development Ltd (ADUG), which owned the club. As part of the scheme, further ‘sham’ arrangements, funded by ADUG, were entered into to enable the club to record lower operating expenses than it actually incurred, as well as a ‘sham’ circular arrangement with Fordham, an entity that purchased the club’s players’ image rights, that was funded by ADUG.
"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 consequence of this, as the Commission found, was that the club filed misstated accounts and concealed the true state of its finances from its auditors and football regulators. The Commission concluded that ‘by its conduct the club clearly intended to circumvent the PL Rules‘."
Breaches of spending limits and co-operation duties
"As a result, Manchester City failed to accurately report its income and expenditure for the purposes of the Premier League’s Profitability and Sustainability Rules and UEFA’s Club Licensing and Financial Fair Play Rules.
"The Commission found that, had all of the relevant agreements been reported accurately in the club’s accounts, it would have been in breach of both the League’s and UEFA’s spending limits by a very substantial amount.
"In addition, during the course of the four-year investigation conducted by the Premier League, the club committed multiple breaches of its duties of co-operation and utmost good faith towards the League. The Commission concluded that the club had ‘made concerted efforts to stop and frustrate the PL investigation’."
