An independent commission has found Manchester City guilty of breaching Premier League financial rules. The club systematically inflated sponsorship revenue to hide more than £830m in secret funding for football operations between 2009 and 2018. This verdict follows investigations into the relationship between the club’s Abu Dhabi-based owners and Manchester’s political elite.
Abu Dhabi investment shaped Manchester
Sheikh Mansour bin Zayed Al Nahyan began the connection to the city’s political elite by buying Man City in a £200m deal [PA Media]. The relationship has since expanded into regeneration projects and large-scale property developments. ADUG also provided financial support to local community facilities. The East Manchester Leisure Centre opened in 2014 through this support.
ADUG planned to build more than 6,000 new homes through an investment of up to £1bn. This plan formed a partnership with the Labour-led Manchester City Council. According to Yahoo, about 1,500 homes across nine sites have been delivered so far. More homes are currently under construction.
Bev Craig, the recently elected Mayor of Greater Manchester, defended the partnership. Speaking to the BBC in 2024 while serving as leader of Manchester City Council, Craig described the club’s owners as having been the catalyst
for remarkable
regeneration. She noted that ADUG had shown a unique passion
and commitment to the city.
Land deals face transparency criticism
Financial arrangements between Manchester City Council and ADUG have faced criticism despite the official stance of local leaders. A 2022 report by the University of Sheffield raised concerns regarding the lack of transparency in these finances. It also questioned the public value of the various schemes. Prof Adam Leaver, who co-authored the University of Sheffield report, has contended that the secrecy surrounding the commercial arrangements.
Manchester’s political figures strongly reject these claims. Sir Richard Leese led the city council when the ADUG deal was struck in 2014. He told the BBC that the investment from Abu Dhabi is what created the value.
Manchester City Council stated that allegations that the ADUG agreement failed to benefit local taxpayers had been debunked repeatedly.
The council has generated nearly £3m in “super-profits” from developments owned by Abu Dhabi to date. An additional payment is anticipated shortly.
Committee investigates GMCA loans to property firms
The Greater Manchester Combined Authority (GMCA) scrutiny committee will investigate loans issued by the GMCA to property firms. Three of these firms are under the control of Manchester City’s owner. This investigation covers the period during Burnham’s tenure as mayor.
The Greater Manchester Housing Investment Loan Fund lent more than £1bn to about 50 developers. Two meetings presided over by Burnham resulted in the approval of approximately £55m in loans. These loans went to property companies ultimately owned by Man City’s owner Sheikh.
Political tension surrounds the club’s recent legal troubles. Burnham’s political opponents have demanded full transparency over his dealings with Manchester City’s owners. He recently told MPs he was happy for everything to be set out in full.
The club denies any wrongdoing and has appealed against the ruling. Bev Craig said that if Manchester City were to lose its appeal, then it should face sanctions.
She noted that what was a football story should have stayed a football story.