Manchester City are expected to challenge claims concerning the source of funding for several of the club’s sponsorship agreements as they appeal findings that they breached the Premier League’s financial regulations.
An independent commission found City guilty of all charges relating to alleged financial breaches between the 2009-10 and 2017-18 seasons.
The commission concluded that the club had artificially inflated its revenue through sponsorship arrangements and used mechanisms that concealed the true extent of certain liabilities.
According to BBC Sport, City have consistently denied wrongdoing and are expected to argue on appeal that key sponsorship payments were funded by the Abu Dhabi government rather than the club’s owner, Abu Dhabi United Group (ADUG).
The disputed arrangements involved funding estimated at about £830.69 million.
The Premier League argued that the arrangements constituted a disguised funding scheme that enabled City to comply on paper with its financial regulations.
However, the commission rejected City’s explanation regarding the source of the funds, describing it as an account developed after the events to conceal the underlying arrangements.
City has criticised the commission’s findings, claiming they contain clear errors of law, principle and fact. Club chairman Khaldoon Al Mubarak has also said City possesses what he described as “irrefutable evidence” to support its position.
The case has also drawn the attention of HM Revenue & Customs (HMRC), with Treasury Committee chair Dame Meg Hillier asking whether the tax authority had sought access to redacted documents contained in the commission’s report.
Hillier said she would welcome reassurance that HMRC recognised the significance of the issues and the wider public interest surrounding the case.
Meanwhile, Etihad Airways, one of Manchester City’s principal sponsors, has rejected suggestions that it was involved in improper commercial arrangements.
The UAE-owned national airline said it was considering legal action against the Premier League over what it described as damaging implications arising from the publication of the commission’s findings.
The Premier League has declined to comment.
City’s appeal will determine whether the commission’s findings stand, while any separate HMRC examination would focus on whether the evidence raises matters within the tax authority’s legal and regulatory remit.
