The Premier League officially announces Manchester City's conviction over serious financial breaches

An independent commission has found Manchester City guilty of every breach relating to the Premier League's financial rules across nine seasons, from 2009/2010 to 2017/2018. The panel also found the club guilty of three of the four charges over a failure to cooperate with the League's investigation.

That confirms the reports splashed across the British newspapers two days ago, which sent shockwaves through the sporting world.

According to an official statement the Premier League published on its website on Tuesday, the independent commission concluded that City entered into "sham" commercial contracts with a number of partners during that period. These deals did not reflect the true agreements between the parties, and served to artificially inflate the club's revenues and cut its costs. The club leaned on other similar arrangements too.

City submitted inaccurate financial accounts and hid the true state of its finances from auditors and football's regulatory bodies, the commission found. The club also breached the spending limits set by the Premier League and UEFA by a significant margin.

A gap of 900 million pounds sterling

The commission explained that City struck a number of sham commercial deals with sponsors during the period under investigation, part of a scheme to fund the club in secret. The companies involved paid only part of the value of the sponsorship contracts, while Abu Dhabi United Group for Development and Investment (ADUG), the club's owner, footed the rest.

Other arrangements funded by the same entity followed, designed to record operating expenses lower than the club actually incurred. Among them was a deal the commission branded "sham" with the company Fordham, which bought the image rights of the club's players. ADUG funded that one too.

These arrangements, the commission concluded, were built to inflate City's revenues and slash its costs by more than 900 million pounds sterling over the period, allowing the club to appear compliant with the financial rules.

City therefore submitted accounts that did not reflect the truth of its revenues and expenses, the commission held, and concealed the true financial position from auditors and regulators. The club's conduct clearly demonstrated "an intention to circumvent the Premier League's rules".

Breach of Premier League and UEFA rules

City failed to accurately report its revenues and expenses for the purposes of the Premier League's profitability and sustainability rules, along with UEFA's club licensing and financial fair play rules, the commission noted.

Had all the relevant agreements been accurately recorded in the club's accounts, the decision states, City would have blown through the spending limits of the Premier League and UEFA by a very significant margin.

Manchester City accused of obstructing the investigation

The breaches did not stop at the financial period under investigation. The commission found that the club committed several breaches relating to its duties of cooperation and good faith during the League's four-year investigation.

City "made a concerted effort to halt and frustrate the League's investigation", the commission concluded, and three of the four charges in this respect were established.

League chief: the Manchester City case is the most important in history

Richard Masters, the Chief Executive of the Premier League, said: "The primary decision establishes the facts relating to what happened at Manchester City during this period, and shows how the club systematically breached the League's rules for almost a full decade."

He added: "This decision confirms the correctness of the Premier League's decision to pursue the case against Manchester City. Although the proceedings so far have been lengthy and difficult, the League has remained determined to establish the facts independently."

"One of the Premier League's core responsibilities is to ensure the application of the rules approved by the clubs themselves, to protect the integrity of the competition," he continued. "It is essential that the competition remains fair and competitive for all clubs and fans, and we treat this role with the utmost seriousness."

Masters called the case and the decision "the most important in the history of the Premier League", but stressed that some aspects still need resolving, chief among them the sanction that will land on City.

The sanction has not been determined: Manchester City has the right to appeal

Establishing the breaches does not mean the sanction has been decided, the Premier League confirmed. A separate hearing before the independent commission will examine the question of sanctions.

That hearing will remain private and confidential under the League's rules, until publication of its results becomes permitted.

City also has the right to appeal against the independent commission's decision. The League has set Friday 2 October as the deadline for exercising it.

A redacted version of the commission's primary decision has been published, and the League affirmed its commitment to releasing the additional annexes at the earliest point the proceedings allow.

The Premier League hopes to wrap up the entire process, including any appeal and the publication of the relevant decisions, as quickly as possible.