Manchester City Held Settlement Talks Before Financial Rules Verdict

Manchester City have entered a prolonged fight over financial-rule breaches after an independent commission found against the club, prompting an appeal filed on 1 October 2026. The case centres on allegations that City used arrangements spanning nine seasons, from 2009 to 2018, to inflate income and avoid Premier League and UEFA sustainability controls.

Settlement discussions ended without agreement

Before the commission’s decision, City held confidential preliminary conversations with the Premier League about a possible financial settlement. Those talks did not produce an agreement, with the club unwilling to move away from its insistence that it had done nothing wrong.

• A negotiated resolution was expected to involve a major financial penalty rather than the most severe sporting consequences.
• Such a deal would not, in itself, have amounted to a legal acceptance of liability by City.
• Even a settlement would have simplified only part of the wider dispute because of the number and scale of the allegations.
• Any agreement was likely to draw strong objections from rivals including Arsenal, Liverpool and Manchester United, clubs who finished behind City in title races during the period of their domestic success.

Commission findings on sponsorship and contracts

The commission concluded that City operated a structure worth close to £1 billion across the 2009-2018 period. It found that the arrangements were intended to circumvent financial regulations through artificial revenue and funding mechanisms.

Central to the ruling was the treatment of sponsorship income. Companies in Abu Dhabi were found to have contributed only part of the values attached to sponsorship agreements, while the remaining sums were paid by Abu Dhabi United Group, the holding company controlled by Sheikh Mansour.

• Commercial revenue was said to have been increased artificially by more than £830 million.
• Image-rights income was overstated by almost £74 million.
• Nearly £17 million in staff-contract obligations was allegedly kept out of view.

The findings have been described by Premier League chief executive Richard Masters as the competition’s most consequential case. Inside the club, however, City chief executive Ferran Soriano told staff that the commission had accepted what he called a league-led “conspiracy theory”.

City contest verdict as sanctions decision awaits

City responded to the ruling with a formal appeal on 1 October. The club said the decision was unsafe and argued that it contained serious mistakes involving the law, core principles and the facts of the case.

In its public response, City maintained that it was innocent of the accusations and said it held extensive evidence which supported each of its positions.

The same independent commission must now decide the appropriate punishment. Possible sanctions include a substantial points deduction, removal from the Premier League or the loss of honours won in previous seasons.

Uncertainty over the sporting project

City’s appeal means a final and binding outcome is unlikely to arrive quickly. The continuing dispute could run for months and leave significant uncertainty around the club’s planning.

That uncertainty may affect Enzo Maresca’s squad, including decisions on player retention and recruitment, while the club waits for the legal process and any sanctions outcome to be completed.