Man City To Argue Abu Dhabi Government Funded Sponsorship Deals

Manchester City is preparing to appeal an independent commission’s findings that the club breached Premier League financial regulations over sponsorship arrangements involving about £830.69 million.

The dispute concerns sponsorship funding between the 2009-10 and 2017-18 seasons.

The independent commission found against City on the charges relating to the disputed financial arrangements, concluding that the club had artificially inflated revenue through sponsorship agreements and mechanisms that concealed the true extent of certain liabilities.

Manchester City has consistently denied wrongdoing.In its planned appeal, the club is expected to argue that the disputed sponsorship payments came from the Abu Dhabi government, rather than from its owner, Abu Dhabi United Group, ADUG.

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That distinction is central to City’s challenge.

The commission rejected the club’s explanation concerning the source of the funds, concluding that the explanation was developed after the events in question to conceal the underlying arrangements.

City has criticised the commission’s conclusions and said they contain what it considers errors of law, principle and fact.

Club chairman Khaldoon Al Mubarak has said City possesses what he described as “irrefutable evidence” supporting its position.

The case centres on sponsorship arrangements that the Premier League argued formed part of a disguised funding scheme.

Etihad Airways, one of Manchester City’s principal sponsors, has also rejected suggestions that it participated in improper commercial arrangements.

The UAE state-owned airline has indicated that it is considering legal action against the Premier League over the implications of the commission’s findings.

Meanwhile, the UK Treasury Committee has raised questions about whether HM Revenue and Customs should have access to redacted documents contained in the commission’s report.

The Premier League has declined to comment on the matter.Manchester City has until the relevant appeal deadline to challenge the commission’s findings.

The sanctions, if any, arising from the findings are a separate matter from the appeal process.

ValidViewNetwork reports that Manchester City’s appeal will focus on the club’s contention that the disputed sponsorship money was government funding rather than owner funding, while the independent commission has already rejected that explanation.

The appeal process will determine whether the commission’s findings stand or are altered.