The Premier League announced the independent committee's ruling that Manchester City severely violated financial regulations from the 2009-10 to 2017-18 seasons, with most charges of non-cooperation during the investigation upheld. Penalties will be determined in a separate case, and the club denies any wrongdoing and is preparing to appeal, with a deadline of October 2.

The committee found that the club signed "false contracts" with several business partners and relied on fake agreements to inflate revenue and lower costs, aiming to make the accounts appear compliant with Premier League profitability and sustainability rules as well as UEFA's financial fair play. The arrangements were described as a "disguised investment plan": funds that should have been recorded as equity contributions from the Abu Dhabi United Group were instead recorded as sponsorship income.

Public figures show that during the same period, Abu Dhabi-related sponsorships amounted to approximately £949.94 million, of which about £119.25 million was identified as legitimate base costs, while the remaining approximately £830.69 million was deemed direct funding from the owner. The committee stated that the inflated revenue and lowered costs exceeded £900 million and determined that the club concealed its true financial status from auditors and football regulatory bodies, with a "clear intent to evade Premier League rules."

In February 2023, the Premier League presented over 100 specific charges covering accurate financial information, player and coach salary disclosures, spending limits set by the Premier League and UEFA, and cooperation with investigations since December 2018. Of the four charges related to non-cooperation, three were upheld. The investigation was initiated after German media leaked internal documents in 2018, with closed hearings scheduled for approximately 12 weeks from September to December 2024, with deliberations extended to this year. Guardiola has left after the end of last season.

Sanction options include point deductions, fines, stripping of titles, or expulsion from the Premier League, but no ruling has been made yet. Manchester City claims the ruling contains clear errors in law, principle, and fact, and will continue to contest in regulatory and legal arenas. The Premier League stated that the core factual ruling can now be published.

In market mechanisms, this is a reputation and qualification repricing driven by regulatory rulings. The seller is the enforcement of Premier League rules, and the buyer is the club that must accept or appeal. Funds flow from future transfer and commercial contract premiums to potential fines and lawsuits, with competitors benefiting in points and the transfer market, while Manchester City's merchandise, sponsorship, and championship odds are under pressure. The event-driven nature is strong, and the final price will still depend on the outcomes of the penalty hearings and appeals.

Source: Public Information