An independent commission found Manchester City guilty of 114 out of 115 charges related to breaches of the Premier League's financial regulations from the 2009-10 to 2017-18 seasons. The chair of the Treasury Committee, Dame Meg Hillier, has requested that His Majesty's Revenue and Customs (HMRC) scrutinize the findings. City has denied the charges and plans to appeal by Friday.
The commission's findings indicated that Manchester City inflated revenue through 'sham' sponsorship agreements and used various methods to disguise the extent of club liabilities. The Treasury Committee has inquired whether HMRC has sought the redacted documents from the commission's report.
A report from Tax Policy Associates claims that City may have failed to pay up to £12 million in taxes due to a contract with former manager Roberto Mancini, and could face penalties that would increase their liabilities to £24 million.
In their appeal, Manchester City intends to argue that key sponsorship deals were funded by the Abu Dhabi government rather than the club's owners, Abu Dhabi United Group (ADUG). The club claims that the value of commercial deals was artificially inflated as part of a 'disguised funding scheme' totaling £830.69 million, which allowed them to appear compliant with financial regulations.
Sources have indicated that City plans to present evidence to the appeal board showing that funds directed to state-owned sponsors originated from the Abu Dhabi government. The independent commission's report rejected City's claims that no disguised funding scheme existed, stating that the club's explanation was fabricated to obscure the realities of the situation.
The case raises questions about the separation between Manchester City's ownership and the Abu Dhabi state, especially considering the connections of Sheikh Mansour, the club's owner, to the ruling family of Abu Dhabi. City has maintained that it operates as a private enterprise, while critics argue that ownership is used for 'sportswashing' the UAE's image.
City chairman Khaldoon Al Mubarak has claimed that there is 'irrefutable evidence' supporting the club's innocence and criticized the commission's decision as containing 'material errors.' Al Mubarak is also listed as an Emirati diplomat in the UK, which grants him certain legal immunities.
Etihad Airways, the club's principal sponsor, has indicated it may pursue legal action against the Premier League, asserting that the commission's findings have damaging implications for the airline, which has denied any involvement in improper commercial arrangements. The Premier League has not commented on the matter.