Manchester City’s attempts to overturn the damning findings of an independent commission formally kicked off at 7pm on Thursday. City was judged to have arranged a series of “sham” sponsorship deals that — along with moves to hide costs off the books — flattered the club’s accounts to the tune of more than £900mn over a period lasting almost a decade. The club, owned by a member of Abu Dhabi’s royal family, said it had lodged its appeal against the Premier League-appointed panel: The club’s firm position is that, on multiple grounds, the opinion contains clear material errors, of law, principle and fact and is unsafe.
The club is innocent of the accusations made by the Premier League and a comprehensive body of irrefutable evidence exists in support of all of its positions, relating to this case. The appeal had been widely flagged ahead of time and is just part of the response to the ruling by the club and its allies. On Wednesday, Abu Dhabi-based airline Etihad threatened legal action against the Premier League, saying its communications around the case had “created damaging implications”.
Etihad, City’s principal sponsor, said it “categorically rejects any finding, conclusion or implication that suggests the airline has ever been involved in improper commercial arrangements”. There is a significant political element too. City chair Khaldoon al-Mubarak is an influential figure in Abu Dhabi’s government, and chief executive of the sovereign wealth fund Mubadala.
British Prime Minister Andy Burnham was forced to backtrack on comments earlier this week after saying he would be “really concerned” if City’s owners were forced out. Downing Street later said: “The initial judgment is serious and there can’t be any suggestion that anyone is above the rules.” English football’s new independent regulator also weighed in with a rather pointed statement: The IFR has powers to assess the suitability of owners, directors and executives and we will use these powers where appropriate, in the interests of protecting the sustainability, honesty and integrity of English football where there is clear evidence of wrongdoing by individuals. City’s football empire stretches well beyond the Premier League.
The parent company has five clubs in Europe alone, with more in Australia, Brazil, the US and beyond. Any suggestion that certain owners or executives are “unsuitable” would have implications across the game. Legal experts have billed City’s chances of overturning the verdict itself a serious uphill climb.
Source: Financial Times Companies · Summarized by HeadlinesBriefing