According to the Daily Mail, Manchester City will argue in its appeal that sponsorship agreements deemed "sham transactions" were funded in part by the Abu Dhabi government, not by the club's owners, thereby demonstrating that the club did not violate Premier League rules.

In a shocking ruling, an independent Premier League commission determined that Manchester City had unlawfully injected over £900 million to circumvent financial rules, with the primary portion being £830.69 million injected by the club's owners to supplement commercial sponsorship payments.

The commission determined that this "hidden financing" enabled Manchester City to unlawfully acquire several players, which kickstarted the club's successful era at the Etihad Stadium. However, sources familiar with the matter revealed that Manchester City's defense is that these funds were actually paid by the Abu Dhabi government, which owns the relevant sponsors, not by the club owner Abu Dhabi United Group (ADUG), a private company owned by Sheikh Mansour. Manchester City believes that because the funds came from the government rather than the club owners, the club did not violate any rules.

Sponsorship agreements with government-backed companies are common in the Premier League, particularly with airlines, and such partnerships are not prohibited. Manchester City is likely to present this argument to a new appeal committee, supported by what the club calls "irrefutable evidence," including bank statements and witness testimony. This significant ruling could result in Manchester City's expulsion from the Premier League and the removal of their championship titles.

Although the case involved over 700 pages of witness testimony and the commission took nearly two years to issue its ruling following hearings in London, Manchester City will argue that this case, which could overturn the club's achievements from 2009 to 2018, ultimately hinges on a simple question: did the funds used to pay the relevant sponsorship agreements come from the sponsor, from the sponsor's owner—the Abu Dhabi government—or from the club owner?

A series of emails sent by Manchester City executives were obtained by hackers, and these emails are considered key evidence in the Premier League's possession. In these emails, which appear highly damaging to Manchester City, relevant executives discussed the flow of funds from Abu Dhabi United Group to Manchester City through sponsors. One email was sent in 2013, when Manchester City's then-chief financial officer Javier Chumillas asked Simon Pearce how the financing mechanism actually worked for the club's main long-term sponsorship agreement with Etihad Airways.

Chumillas stated in the email: "I need to understand the mechanism for the additional sponsorship funds flowing through ADUG. Is it 'ADUG shareholders → ADUG → Etihad Airways → Manchester City' or 'ADUG shareholders → Etihad Airways → Manchester City'?"

Other emails mentioned that funds would be "transferred" through sponsors. During the period in question, £8 million of the Etihad Airways sponsorship agreement was covered by the airline itself, while the remaining £59.5 million came from Abu Dhabi United Group. An April 2010 email regarding a sponsorship agreement with Abu Dhabi-based Aabar specified that Aabar would contribute £2 million, while "the remaining £12 million would come from other funding sources provided by His Highness." However, Manchester City continues to insist that the Abu Dhabi government, as the principal shareholder of these companies, covered these shortfalls, and the funds did not come from the club owners.

Manchester City is also expected to emphasize that these emails reflect incorrect assumptions made by employees working in Manchester. The "irrefutable evidence" to which the club has repeatedly referred throughout the process specifically refers to government bank statements and witness testimony presented at the hearing. These materials show that funds were transferred from government accounts to sponsor accounts and then used by the sponsors to pay Manchester City.

Apparently, these materials did not convince the initial committee that heard the case. The committee stated in its ruling: "This explanation was invented long after the event to conceal and obscure the true nature of the hidden financing arrangements."

The value of the sponsorship agreements themselves is not the issue in this case, as the rules requiring agreements to be assessed at "fair market value" only came into effect in 2021. Manchester City's deadline to appeal is Friday. Although the public ruling has been issued, it is understood that the committee also found that Sheikh Mansour, a member of the UAE royal family, was unaware of this series of agreements, which the committee described as "sham transactions."

In its appeal, Manchester City could argue that it is implausible to claim that Sheikh Mansour was completely unaware of the use of approximately £830 million of his personal funds. The committee's use of the term "sham" is also expected to feature in Manchester City's appeal arguments. The club could argue that this is not merely a descriptive term for something suspicious, but a legal term that was incorrectly applied in this case.

Manchester City's high-level legal team could also challenge the time the committee took to reach its decision. They will argue that such cases should be decided within three months of the hearing, not 20 months, so that judges can accurately recall the evidence when drafting the ruling. Due to the prolonged delay, they will argue that the ruling is "unreliable."

Manchester City will also emphasize that the club provided no fewer than 24 witnesses at the hearing, while the Premier League did not provide a single witness who could confirm the alleged conspiracy. Manchester City declined to comment. It is also understood that the new appeal committee is expected to consist of retired judges with extensive experience in appeal cases.

According to legal experts, Lord David Pannick KC, a member of Manchester City's defense team, is a specialist in appellate law. Following the ruling announcement, Manchester City CEO Ferran Soriano sent a message to club employees, hinting at the club's next steps.

Soriano stated: "The entire Premier League case against us is based on a false allegation: that the owner's personal funds somehow flowed secretly to the club through various sponsors in Abu Dhabi. This simply is not true. We presented irrefutable evidence to the Premier League commission demonstrating that such a situation could not and did not occur. This evidence includes bank statements, fund transfer records, witnesses, and all necessary materials clearly demonstrating that the funds did not come from the owner."

Meanwhile, another report released last night revealed that Etihad Airways is considering taking legal action against the Premier League. In a statement, Etihad Airways said it "firmly rejects" the Premier League commission's conclusions. In its forceful statement, Etihad Airways said the Premier League "never" communicated with them throughout the entire process, and the company was not given the right to respond or the opportunity to "provide relevant information."

A spokesperson stated that the ruling "has adversely affected Etihad Airways," and the Premier League "must take responsibility for the consequences resulting from how these conclusions were presented."

Andy Burnham, the mayor of Greater Manchester, also commented on the matter. The former council leader said he would be "very concerned" if Manchester City were to lose its current owners, who have invested significantly in transforming the area of East Manchester near the club's stadium.

The independent football regulator has the power to require that owners deemed unfit to hold a club license step down. The regulator stated yesterday that the committee's ruling "raises serious questions." The body also reiterated its right to "assess the fitness of owners, directors, and executives" and "will exercise these powers when appropriate." The Premier League declined to comment.

Traducido por IA.

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