The UK audit regulator took charge of inquiries into Manchester City’s accounts after an independent commission ruled the club inflated its position by more than £900 million.
Dame Jayne-Anne Gadhia, chair of the Financial Reporting Council, confirmed the move in a letter to Liam Byrne, chair of the House of Commons business committee. She stated the FRC reclaimed responsibility from the Institute of Chartered Accountants in England and Wales on 30 September 2026. The action followed publication of the commission’s findings the previous day.
Gadhia said the watchdog was conducting preliminary enquiries. These aim to determine whether sufficient grounds exist to open a formal investigation into the preparation of the accounts and the quality of audits by BDO.
An independent commission found Manchester City guilty of all charges linked to serious breaches of Premier League financial rules between the 2009-10 and 2017-18 seasons. The ruling stated the club arranged sham commercial contracts that misrepresented true agreements.
It also filed misstated accounts and concealed the true state of its finances from auditors and regulators. The schemes artificially inflated revenues and reduced costs by more than £900 million.
The commission further upheld most charges that the club failed to cooperate with the Premier League investigation. Manchester City lodged an appeal against the decision. The club argued the ruling contains material errors of law, principle and fact and is unsafe.
The FRC can examine BDO’s audit work and the conduct of any Manchester City directors or employees who belonged to a professional accountancy body at the relevant time. If a formal probe finds breaches of standards, the regulator holds powers to impose fines or bans.
Meanwhile, the Premier League process continues separately. Sanctions remain pending while the club pursues its appeal.
