New “leaked” emails on Manchester City’s previous sponsorships by state firms in Abu Dhabi have been released by the German magazine Der Spiegel. The publication asserts that these letters call into question the ruling of the court of arbitration for sport, which reversed City’s Uefa ban. Simon Pearce, a City director and senior official in an Abu Dhabi government institution, stated in one of the emails that he was “forwarding” the airline £91 million of the £99 million that Etihad owed the club for sponsorship, with Etihad contributing just £8 million.
Using Money Tricks
Three emails from City’s former finance officers to Pearce, a City board member and senior adviser on the Executive Affairs institution (EAA), a crucial Abu Dhabi government institution, were among the communications that the CFCB and Cas examined. In 2012–13, 2013–14, and 2015–16, the financial officers detailed how Etihad only paid £8 million toward sponsorship deals worth £35 million, £65 million, and £67.5 million, respectively, to City.
They stated that Mansour’s corporate ownership vehicle, the Abu Dhabi United Group (ADUG), was covering the remaining expenses. He responded to Baumgartner, “So we should be receiving a total of £99m of which you will provide £8m.” As a result, I only sent you £88.5 million when I should have sent £91 million. In essence, I owe you £2.5 million. Pearce presented Baumgartner with two choices for settling the £2.5 million that was missing. One was for Etihad to sponsor just £65 million of the £67.5 million in 2013–14; the remaining £2.5 million was to be paid the following year. Pearce stated that the alternative was as follows: “You pay the £65 million now, and I will forward the £2.5 million in a few months, at which point you can forward it on.”
UEFA’s Reaction
The Union of European Football Associations (UEFA) suspended the squad from the Champions League in 2020 for a two-year period. Manchester City challenged the decision to the Court of Arbitration for Sport (CAS) with the help of over a dozen eminent attorneys. Even though there was ample proof of Manchester City’s dubious business practices, UEFA lost the case. After all, the UAE suppresses political opposition at home, abuses human rights, and is suspected of war crimes related to the current carnage in Yemen, a charge it disputes. It seems that the team owners will stop at nothing to present themselves in the best possible light on the world stage of professional football. Furthermore, it appears dubious that the team’s actions are being funded by one of the richest countries on the planet, who may be dodging regulations about expenditure by making covert payments.
Funds Provided By The Government
Sheikh Mansour owns the business Abu Dhabi United Group Investment & Development (ADUG), which held formal ownership of Manchester City from 2008 until the team was moved to another of Mansour’s companies last year. Authorities in the United Arab Emirates have often maintained that ADUG is an entirely private enterprise and that Mansour’s engagement with the English squad is an entirely private venture.
A lawyer for the Abu Dhabi Finance Ministry testified before CAS that ADUG “is completely unconnected” to either the Emirate of Abu Dhabi or the UAE government. Manchester City’s response has been consistent throughout the shocking “leaks” of its internal emails published in the German magazine Der Spiegel, as well as the subsequent Uefa investigation that resulted in a guilty finding, a two-season Champions League ban, and a fine of €30 million (£25 million).
These reactions have included outrage, denial, and scorn. FFP regulations restrict the amount of money owners can use to cover losses, which encourages top-tier European teams to stay within their income range and avoid going overboard with player salaries and transfer fees and maybe entering a financial crisis. Following his 2008 takeover, Mansour began to finance massive losses on player recruitment and wages, and City tried to turbo-boost their income with significant sponsorships from Abu Dhabi corporations. This was especially the case after the adoption of FFP in 2011.
Conclusion
In conclusion, the Sheikh has drawn a lot of criticism due to the UAE’s human rights violations. He’s been accused of sportswashing, as is his club. The video claims that UEFA officials informed City that it had been paid $19 million in two payments in 2012 and 2013. That was made up of imaginary sponsorship funds. These financial transfers were used as proof by the FA in February. At the time, it charged the team for violating 115 Premier League financial rules.
