BDO Faces FRC Scrutiny Over Manchester City Financial Audit

Manchester City Auditor BDO Faces Potential Regulator Scrutiny After 900 Million Pound Financial Rules Finding

Accounting giant BDO could face an investigation by accounting industry regulators after Manchester City was found guilty of breaching Premier League financial rules to the value of 900 million pounds.

BDO has approved the football club's official financial accounts since 2007. This period covers the nine seasons between 2009 10 and 2017 18 during which the independent commission found the systemic breaches took place.

A ruling published by the Premier League detailed that the independent commission determined Manchester City filed misstated accounts and concealed the true state of its financial health from both football regulators and its own independent auditors.

The Financial Reporting Council, the UK auditing regulator, could still launch an investigation into BDO and its oversight role. The FRC declined to comment officially on the matter.

Accounting industry sources indicated that the regulator is aware of the situation and is examining whether the details fall directly within its enforcement remit. The sources noted that questions remain regarding the auditor's work, though the fact that Manchester City intentionally misled its accountants introduces significant legal and procedural complexities.

Responding to enquiries, BDO stated it is bound by client confidentiality rules and cannot comment on the situation.

The accounting firm has faced previous regulatory action from the Financial Reporting Council, receiving 7.4 million pounds in fines across two separate enforcement actions during 2025 26. Those penalties accounted for more than half of the 12.9 million pounds total fines handed out by the watchdog that year.

Calls for Criminal Investigation

The findings against Manchester City have prompted demands for law enforcement intervention, including potential involvement from the Serious Fraud Office.

Lord Cruddas, founder of financial trading business CMC Markets which sponsors Everton FC, questioned whether the case should now become a police matter. He stated:

"Surely the Man City findings are now a police matter. If accounts have been falsified and auditors have been misled then it is potentially a criminal matter. The auditors will call in the police, directors are personally liable for any fraud of a UK company even if it is foreign owned."

Former Football Association and Manchester City chairman David Bernstein also noted that the case may need to be examined by external authorities.

A spokesperson for the Serious Fraud Office stated:

"In line with long established practice to avoid prejudice to law enforcement activity, we can neither confirm nor deny any investigation into this matter."

Source: This is Money