Man City To Argue Abu Dhabi Government Funded Sponsorship Deals In Appeal
Club disputes Premier League finding that owner provided £830m in disguised funding
Manchester City are expected to argue on appeal that payments underpinning key sponsorship agreements came from the Abu Dhabi government rather than the club’s owner, according to sources.
The claim forms part of City’s challenge against an independent commission’s ruling that the club breached Premier League financial regulations between the 2009-10 and 2017-18 seasons.
The commission announced on Tuesday that it had found City guilty of all charges brought against them relating to the nine-season period.
City have consistently denied wrongdoing and are expected to lodge an appeal by Friday.
The commission concluded that the club artificially inflated its revenues through what it described as “sham” sponsorship agreements, with financial assistance from its owners.
Abu Dhabi United Group (ADUG), the private investment company of Sheikh Mansour, was accused of providing additional funding to commercial agreements as part of a “disguised funding scheme” worth £830.69 million.
According to the commission, the arrangement helped City appear to comply with Premier League and UEFA financial regulations.
However, sources told BBC Sport that City will present evidence to an appeal board which they believe demonstrates that the money sent to sponsors originated from the Abu Dhabi government rather than ADUG.
The commission rejected that explanation, describing it as “untrue” and concluding that the account was developed retrospectively to obscure the true nature of the funding arrangements.
City have strongly criticised the judgement, saying it contains “clear material errors, of law, principle and fact, and is unsafe”.
The club’s chairman, Khaldoon Al Mubarak, also said on Saturday that City had “irrefutable evidence” supporting their position.
Sheikh Mansour, a member of Abu Dhabi’s ruling family and brother of UAE President Sheikh Mohamed bin Zayed Al Nahyan, took control of City through ADUG in 2008.
Premier League rules permit state-owned entities to sponsor clubs, a point that could form part of City’s appeal.
Meanwhile, Etihad Airways, one of City’s principal sponsors, has threatened legal action against the Premier League over the publication of the commission’s findings.
The UAE’s state-owned national carrier said the findings had “damaging implications”, despite the airline not being named in the redacted version of the judgement released publicly.
Etihad said it “categorically rejects any finding, conclusion or implication” that it was involved in improper commercial arrangements with Manchester City.
The airline is owned by L’Imad, the UAE sovereign wealth fund chaired by Abu Dhabi’s Crown Prince, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.
The Premier League case and City’s appeal could now determine how the club’s sponsorship arrangements and the role of Abu Dhabi-linked entities are treated under the competition’s financial regulations.
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