Manchester City’s defence risks being undermined by 2015 Etihad Airways statement
Manchester City’s defence in a crucial appeal regarding allegations of financial misconduct faces potential challenges from a statement made by Etihad Airways in 2015, reports BritPanorama.
The club plans to contend that some of its funding from sponsorship deals originated from the Abu Dhabi Government rather than solely through its majority owners, Abu Dhabi United Group (ADUG).
However, a statement submitted to various US government departments in May 2015 by Etihad challenges this assertion. It explicitly states: “The assertion that the Abu Dhabi Government paid for Etihad’s sponsorship of English Premier League football club Manchester City is equally false.”
Etihad’s 2011 sponsorship agreement with Manchester City included naming rights for the club’s stadium, funded through the airline’s own resources. “It is not uncommon for airlines to have sponsorships with sports teams and their venues,” the statement adds.
Further elaboration in the 60-page submission notes, “We are Government-owned and have been since our founding. We are and have always been clear that we do not receive any subsidies from the Abu Dhabi Government and that we are financed through a combination of equity, shareholder and commercial loans.”
The independent commission’s ruling this week concluded that Manchester City violated financial regulations from the 2009-10 to 2017-18 seasons. It determined that the club had breached rules through sponsorship arrangements labelled as a “disguised funding scheme.” The findings highlighted that City declared close to £950 million in sponsorship revenue sourced from Abu Dhabi-based entities, while approximately £830 million was attributed to ADUG financing.
The commission further asserted that these arrangements artificially inflated the club’s revenue, creating an impression of compliance with financial limits. In response to the ruling, Manchester City announced on Friday that they had lodged a comprehensive appeal, declaring that, “on multiple grounds, the opinion contains clear material errors of law, principle, and fact and is unsafe.”
The statement went on to insist that “the Club is innocent of the accusations made by the Premier League, and a comprehensive body of irrefutable evidence exists in support of all its positions, relating to this case.”
Manchester City has consistently denied any wrongdoing, with their appeal set to undergo review by a distinct Appeal Board in accordance with Premier League regulations. The rules stipulate a hearing must take place within 12 weeks of the appeal being filed, yet the timeline and final resolution remain ambiguous. Discussions regarding any potential punitive measures will be addressed separately.
The unfolding situation serves as a stark reminder of the complexities at the intersection of sport and finance, where even the most established clubs can find themselves at the mercy of unclear definitions and shifting regulations.
