Need to know
Manchester City are in the eye of a storm after being found guilty of 114 Premier League rule breaches
A general view of the Etihad Stadium, home of Manchester City
Manchester City have been found to have broken rules over a nine-year period(Image: Martin Rickett/PA Wire)
Who are Manchester City's auditors after damning Premier League verdict?
Concealment from financial auditors: An independent commission concluded that City filed misstated accounts and deliberately hid the true state of their internal finances from both football regulators and their external auditors. This active concealment was accomplished through undisclosed funding mechanisms and artificial expense reductions designed to make the club appear compliant with Profitability and Sustainability Rules (PSR).
Sham agreements: According to the ruling, the club arranged inflated commercial sponsorship deals that relied on disguised equity injections from the owner rather than genuine arm's-length commercial revenue. The commission found that by presenting these "sham" contracts as legitimate commercial income to auditors, the club filed financial statements that included artificially inflated revenue exceeding £900million between 2009 and 2018.
Auditors deceived: City's historical accounts before, during and following the period under investigation were signed off by BDO. The commission concluded that there was systemic deception by club management rather than accusing BDO of intentional complicity.
Scrutiny of auditors: With the findings of misstated accounts now in the public domain, financial accounting watchdogs such as the Financial Reporting Council (FRC) could potentially review the auditors' work, according to accounting experts. Regulatory bodies typically examine whether external auditors exercised sufficient professional scepticism when evaluating accounts.
Impact of false witness testimony: The commission noted that several key factual witnesses called by City gave dishonest, untrue testimony in critical areas. Because external financial auditors rely on management representations during standard audits, such misleading statements prevented auditors from uncovering underlying financial misstatements.
Future audit and reporting requirements: Future financial statements submitted to regulators by City will be subjected to intense examination. Industry expectations suggest auditors handling the club's books moving forward will be required to implement the strictest compliance checks, independent funding verifications and heightened scrutiny over all equity-backed commercial agreements. City, who intend to appeal against the verdict, continue to deny any wrongdoing.
Man City's stance: Manchester City have strongly rejected the commission's findings, maintaining that the accusations are entirely false. The ruling remains subject to an ongoing appeal process, during which no final determination or sanctions have been fully enacted