The Manchester City ruling: what it means for clubs outside the Premier League

What the commission decided

The Premier League's statement of 29 September 2026 says the independent commission found City guilty of all charges related to serious breaches of the league's financial rules from the 2009/10 to the 2017/18 seasons, and of the majority of charges about failing to cooperate with the league's investigation.

According to the league, the commission found that City arranged sham commercial deals that artificially inflated revenue and reduced costs by more than £900 million during that period, that the club intended to get round the rules, and that it made concerted efforts to frustrate the investigation. The case began with an investigation in December 2018 and charges in February 2023.

Press reports describe the outcome as 114 of the 115 charges proved. The league groups the charges differently in its own statement, so treat the exact count with care.

What happens next

Two things are still open. The first is the sanction. The Premier League says the commission will deal with it at a further hearing. The league's rules allow a range of outcomes, from a reprimand or fine to a points deduction or expulsion, and none has been decided.

The second is the appeal. On 2 October 2026 the Premier League confirmed that City had appealed the commission's decision. The Chair of the Judicial Panel appoints an independent Appeal Board, and its hearing stays private until publication is allowed. Sky Sports reports that under a faster appeal process introduced this season the hearing would need to finish within twelve weeks, with a ruling to follow, which could mean a decision early in 2027. The league has not confirmed that timetable.

The separate fight over owner linked deals

City's other recent case against the league was about associated party transactions: commercial deals between a club and companies linked to its owners. In September 2024 an arbitration panel found parts of the league's rules unlawful. In February 2025 a tribunal declared the 2021 to 2024 version of the rules void. The league amended its rules, City challenged the new version, and on 9 September 2025 the two sides settled, with City accepting that the current rules are valid and binding.

That matters below the Premier League too. On 15 May 2026 Championship clubs approved new squad cost rules to replace the profitability and sustainability rules from the 2026/27 season, and the EFL says the framework includes safeguards around commercial deals linked to owners or associated parties.

Where the Independent Football Regulator fits

The IFR does not decide breaches of Premier League rules or set league sanctions. Its powers come from the Football Governance Act 2025: licensing clubs, and assessing the suitability of owners, directors and senior executives.

Speaking on 30 September, IFR chair David Kogan said the commission's decision "raises serious issues". He said the regulator would use its powers to assess the suitability of owners, directors and executives where appropriate, and would await further developments while proceedings between City and the league continue, ESPN reported.

Five lessons for smaller clubs

Most clubs in the Championship, League One, League Two and the National League will never face a case like this. But the City ruling turns on records that every club keeps. These are our practical takeaways, not findings of the commission.

1. Document every owner linked deal. Sponsorships, loans, property and services from companies connected to the owner should have a written agreement, a price you can justify and a board minute.
2. Make the accounts tell the same story as the contracts. The commission's findings were about money that looked like one thing and was another. Your forecast, funding letters and accounts should agree.
3. Answer regulators fully and on time. The IFR's first enforcement step, a warning notice to Morecambe's owners in July 2026, was about unanswered information requests.
4. Keep the board in the loop on paper. If a deal matters, the minutes should show the board saw it and agreed it.
5. Start the IFR application from clean records. The provisional licence window opens on 2 November 2026. A club whose records already agree spends that time on decisions, not reconstruction.

Our guide to the provisional licence covers what the regulator asks for, and our guide to the owners, directors and senior executives test covers who the regulator assesses. If you want help getting your club's records ready, talk to us.

Last updated 5 October 2026. This article is general information about the published regime, not legal or financial advice for your club.