Manchester City are reportedly preparing to argue that money directed towards key sponsorship agreements came from the Abu Dhabi government rather than the club’s owners as they challenge the verdict in their Premier League financial case.
An independent commission found City guilty of all charges relating to breaches of the league’s financial regulations between the 2009-10 and 2017-18 seasons.
City have repeatedly denied wrongdoing and have until Friday to lodge an appeal against the decision.
A central part of the case concerned sponsorship revenue and the commission’s finding that City artificially inflated commercial income through “sham” agreements.
Abu Dhabi United Group, the private investment company belonging to City owner Sheikh Mansour, was found to have topped up commercial agreements as part of what the commission described as a “disguised funding scheme”.
The total involved was said to be £830.69m, with the commission finding that the arrangements allowed City to present higher commercial revenue while attempting to comply with Premier League and UEFA financial regulations.
However, City are expected to challenge that conclusion when their case reaches an appeal board.
Reports claim the club will present evidence which it says shows that money directed to sponsors originated from the Abu Dhabi government rather than ADUG.
Premier League rules allow state-owned organisations to enter sponsorship agreements with clubs.
Commission rejected City’s explanation
The independent commission rejected City’s explanation and concluded that the claim regarding the source of the funding was “untrue”.
In its findings, the commission said: “We concluded that it was an ‘explanation’ that the club had concocted well after the event in an attempt to obscure and conceal the realities of the disguised funding scheme.”
City have strongly disputed the commission’s conclusions and signalled their intention to challenge the decision.
Following the verdict, the club said the opinion contained “clear material errors, of law, principle and fact, and is unsafe”.
City chairman Khaldoon Al Mubarak has also referred to what he described as “irrefutable evidence” supporting the club’s position.
Sheikh Mansour is a member of Abu Dhabi’s ruling family and the brother of UAE President Sheikh Mohamed bin Zayed Al Nahyan.
Etihad considers legal action
Etihad Airways, City’s principal sponsor, has said it is considering legal action against the Premier League following publication of the commission’s findings.
The UAE’s state-owned national airline said the release had “damaging implications…despite the airline not being named in the redacted published findings”.
Etihad added that “it categorically rejects any finding, conclusion or implication that suggests the airline has ever been involved in improper commercial arrangements”.
The airline is owned by sovereign wealth fund L’Imad, which is chaired by the Crown Prince of Abu Dhabi.
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