Manchester City’s appeal against the Premier League’s verdict over 115 financial-rule charges has been hit by fresh scrutiny after evidence the club previously provided to UEFA reportedly raised questions about its defence of disputed sponsorship payments.
City were found guilty of 114 of the 115 charges brought by the Premier League following an independent commission’s findings covering the period from 2009 to 2018.
The Premier League said the commission found that Manchester City used “sham” commercial arrangements that artificially inflated the club’s revenues and reduced its costs by more than £900 million during the period under investigation. The commission also found breaches relating to the club’s financial reporting and cooperation with the Premier League’s investigation.
Manchester City has consistently denied wrongdoing and has now formally appealed the commission’s findings. The Premier League confirmed on October 2 that the club lodged its appeal with the chair of the Judicial Panel. The appeal will be considered by an independent three-member Appeal Board.
Fresh Questions Over City’s Appeal Defence
A central part of Manchester City’s reported appeal strategy concerns the source of money used to support sponsorship arrangements.
According to reports, City is expected to argue that additional funding connected to disputed sponsorship agreements came from the Abu Dhabi government rather than from the club’s owner, Abu Dhabi United Group (ADUG).
That distinction is important because the Premier League commission found that money from ADUG was used in arrangements that enabled the club to record sponsorship income that did not reflect the true source of the funds.
Sky Sports reported that City is expected to rely on the argument that the additional sponsorship funding came from the Abu Dhabi government and not ADUG.
However, reports have now raised questions about whether evidence previously submitted by the club to UEFA could complicate that argument.
£15m Payments Under Scrutiny
The Times has reported that two payments of £15 million each, made in 2012 and 2013, are central to the latest issue.
The payments were reportedly attributed by Manchester City to Jaber Mohamed, who was identified as a financial broker in evidence submitted to UEFA.
The Times reported that Mohamed was in fact the general director of the United Arab Emirates Crown Prince Court at the time, and that City did not disclose that connection to UEFA in the evidence concerning the payments. The club reportedly told UEFA that the payments had been caused to be made by ADUG.
The payments have become significant because they could potentially conflict with the position City is expected to advance in its Premier League appeal regarding government-backed sponsorship funding.
The Times reported that the payments should have been made by Etisalat, a major Manchester City sponsor that is majority-owned by the United Arab Emirates.
Etihad Statement Also Raises Questions
The latest development comes after a separate statement from Manchester City’s principal sponsor, Etihad Airways, was reported to have contradicted part of the club’s expected appeal strategy.
According to Sky Sports, Etihad told US government departments in 2015 that reports suggesting the Abu Dhabi government subsidised its sponsorship arrangements were false.
The airline stated at the time that although it was government-owned, it did not receive subsidies from the Abu Dhabi government and was financed through shareholder equity and commercial loans.
That statement could become relevant if City argues during its appeal that disputed sponsorship money came directly from the Abu Dhabi government.
The issue is particularly significant because the Premier League commission concluded that sponsorship arrangements involving City were part of a disguised funding scheme involving ADUG.
Manchester City Maintains Its Position
Despite the findings against the club, Manchester City continues to deny the charges and has challenged the commission’s conclusions.
The club has now formally appealed the verdict, meaning the findings remain subject to the appeal process. The Premier League has confirmed that the Appeal Board has wide powers and can allow or dismiss the appeal or make other orders, including varying the original decision.
The appeal process will be conducted privately and confidentially until publication of the outcome is permitted under Premier League rules.
What Happens If City’s Appeal Fails?
The financial charges case has not yet reached the final sanctions stage.
The Premier League has said the independent commission will separately determine the appropriate sanction following the guilty findings. Its rules allow for a range of possible sporting and financial penalties, including fines and points deductions.
Reports have also discussed the possibility of more severe sporting sanctions, including relegation or expulsion, although the precise punishment will depend on the outcome of the remaining legal and disciplinary process.
For now, Manchester City’s immediate focus is its appeal.
The fresh reports concerning the UEFA evidence and the 2015 Etihad statement could become important in determining whether the club can successfully challenge the commission’s findings over the disputed sponsorship arrangements.
The appeal outcome will ultimately determine whether the 114 findings against Manchester City are upheld, overturned or otherwise varied.