"To cheat, trick, deceive, delude with false pretences; to impose upon, take in, hoax." That is the Oxford English definition of the word "sham". And that word appears eight times in the independent commission's ruling published on Tuesday, which found Manchester City guilty of all charges related to serious breaches of financial rules, and all but one in relation to a failure to co-operate with the investigation. The 40-page document makes fascinating reading.
It catalogues how the club's owners, Abu Dhabi United Group, knew from the 2009-10 season that there would be major overspends if the club was to reach the level they wanted to get to. So, the ruling says, City found a way to boost sponsorship income. Season, after season, after season.
The report shows how the club's owners were topping up the value of the deals. The so-called Disguised Funding Scheme is the central plank in a series of charges that Manchester City have been found guilty of by the Premier League. This scheme managed to hide more than £830m of sponsorship funding, while other devices hid £90m in expenses.
We break down the key findings from the document. Manchester City were bought by Abu Dhabi investors in 2008 but, the document says, their predicament had become clear from the start of the 2009-10 season. These were ambitious new owners who did not just want the club to be competitive.
They wanted to have the best players and be winners. That was not going to be possible without spending more money. Total losses for the 2009-10 campaign were going to exceed what was, at that time, the record single-season financial loss by a Premier League member club.
That was Chelsea FC in 2006, of £140m. According to the ruling, that was a record that the City owners were adamant the club should not break The club knew they would likely continue to suffer large losses for at least the following five seasons. This was when both Uefa and the Premier League were about to bring in financial fair play rules.
Extract — continue reading at the source.
