City misrepresented £830.69 million as sponsorship income, commission finds

Manchester City plans to argue in their appeal against Premier League charges that additional funding for sponsorship deals from 2009 to 2018 originated from the Abu Dhabi government rather than the club's owners. An independent commission previously determined that City violated financial rules by misrepresenting £830.69 million of owner funding as sponsorship income. This finding has prompted the club to contest the commission's conclusions in a forthcoming appeal.

During a hearing in 2024, City's legal team asserted that the funding was sourced from the Abu Dhabi government, but the commission dismissed this argument. The commission's report stated that City had fabricated this explanation after the fact to obscure the realities of what it termed the Disguised Funding Scheme. City continues to maintain its innocence regarding any wrongdoing as it prepares to file its appeal.

City's lawyers claimed that the Abu Dhabi sponsors were responsible for the sponsorship amounts reported in their financial statements. They denied that funds from the Abu Dhabi United Group (ADUG) were involved. Additionally, they contended that the Premier League misidentified financial support from the Abu Dhabi government as money from ADUG, which the commission also rejected.

The commission's report highlighted a specific instance in May 2013, where City allegedly generated amended sponsorship agreements to cover a financial shortfall just days before the end of the fiscal year. This action was taken without consulting the sponsors and was aimed at avoiding potential violations of UEFA's Financial Fair Play regulations.

As City prepares for its appeal, legal experts suggest that the process could extend into 2027. The club must submit its appeal by Friday, and new Premier League rules mandate that disciplinary processes be resolved within 12 weeks. City's legal team may argue that the charges stem from 2023, and thus the new rules should not apply to their case, potentially prolonging the proceedings.

via Sky Sports