EPL: FRC Takes Over Inquiries Into Man City Accounting Irregularities — Report

The United Kingdom’s Financial Reporting Council (FRC) has taken over inquiries into accounting irregularities involving Manchester City and its auditor, BDO, following findings by an independent commission concerning the football club’s financial records.

The FRC confirmed that it assumed responsibility for the regulatory consideration of the case from the Institute of Chartered Accountants in England and Wales (ICAEW) on September 30, 2026.

According to reports published on Tuesday, the regulator is examining the commission’s findings to determine whether there are grounds to launch a formal investigation. However, no formal investigation has commenced.

The development follows an independent commission’s ruling that Manchester City breached Premier League financial regulations during the nine seasons between 2009/2010 and 2017/2018.

The commission found that the club had artificially inflated its financial position by more than £900 million through commercial arrangements and had submitted inaccurate financial accounts.

It also concluded that the club had concealed aspects of its financial position from auditors and football regulators.

Manchester City has rejected the findings and is appealing the decision, arguing that it contains material errors of law, principle and fact.

The FRC’s inquiries will focus on the preparation of the club’s financial statements and the auditing work carried out by BDO, which has served as Manchester City’s auditor for several years.

The regulator has powers to impose sanctions where professional misconduct is established, including penalties against accountants and individuals who fall under its disciplinary jurisdiction.

However, the FRC faces limitations in compelling evidence from the club and pursuing individuals who are outside the scope of its regulatory powers.

Liam Byrne, chairman of the House of Commons Business Committee, raised concerns about these limitations, calling on the government to explain why proposed reforms to strengthen the regulator’s powers had been abandoned.

The case has intensified scrutiny of financial accountability in English football, particularly regarding the oversight of clubs’ accounts and the responsibilities of external auditors.

The FRC’s preliminary inquiries remain separate from Manchester City’s appeal against the Premier League-related findings. The regulator’s review could lead to a formal investigation, but no additional misconduct has been established through the current inquiry.