Manchester City have lodged an appeal against an independent commission’s findings that the club breached Premier League financial regulations over sponsorship arrangements involving £830.69 million in disputed funding.
The commission found City guilty of all charges relating to serious financial breaches between the 2009-10 and 2017-18 seasons. It concluded that the club used a “disguised funding scheme” in which £830.69 million of owner funding was recorded as sponsorship income, helping to artificially inflate the club’s revenues.
City have consistently denied wrongdoing and are expected to argue in their appeal that the disputed sponsorship payments were funded by the Abu Dhabi government rather than by their owner, Abu Dhabi United Group (ADUG).
The commission rejected that explanation, finding that the money had come from ADUG and had been presented as commercial sponsorship income. City’s position remains that the commission’s findings contain errors of law, principle and fact.
Manchester City chairman Khaldoon Al Mubarak has said the club possesses what he described as “irrefutable evidence” supporting its position.
The case has also attracted the attention of HM Revenue & Customs. Dame Meg Hillier, chair of the Treasury Committee, has asked HMRC whether it has requested access to redacted documents contained in the commission’s report.
Meanwhile, Etihad Airways, one of Manchester City’s principal sponsors, has rejected any suggestion that it was involved in improper commercial arrangements. The UAE’s state-owned national airline said it was seeking legal advice and considering legal action over the implications of the Premier League findings.
The Premier League has declined to comment on the matter.
Manchester City’s appeal will now challenge the commission’s findings, with the disputed source of the £830.69 million at the centre of the club’s case. Any separate examination by HMRC would concern whether the evidence raises issues within the tax authority’s own legal and regulatory remit.