After over seven years of proceedings, Manchester City has been found guilty of breaching Premier League financial rules. Yet despite such an event reverberating across the country, Prime Minister Andy Burnham has expressed concern about the potential loss of the club’s Emirati owners, Sheikh Mansour and the City Football Group, praising their investment in Manchester more broadly. The UAE has reportedly warned of financial consequences in response to the treatment of the club. But in what ways could the Gulf state affect British commerce?
What was Manchester City Accused of?
Between the 2009/10 and 2017/18 seasons, Manchester City used sponsorship agreements that misrepresented where some of its funding came from. The Premier League’s independent commission found that £830.69 million recorded as commercial income had actually been funded by the club’s owner, Abu Dhabi United Group (ADUG). This meant money from the owner was presented as sponsorship revenue, making the club’s finances appear stronger. Across the wider arrangements, the commission found that revenue had been inflated and costs reduced by more than £900 million. It also found that Manchester City had provided inaccurate financial information and breached its duty to co-operate with the Premier League’s investigation.
The Premier League has its own rules governing club finances, accounting and good governance, alongside the laws that apply to companies more generally. If a club is suspected of breaking these rules, the Premier League Board can investigate and refer the case to an independent commission, a panel appointed to examine the evidence and decide whether the rules have been breached. These proceedings are held privately.
Clubs can challenge a commission’s decision by appealing to an Appeal Board, which can uphold or overturn the original decision or reach a different outcome. Manchester City has appealed the commission’s findings, so the case is not yet fully resolved.
What Sanctions Could Manchester City Face?
If Manchester City’s appeal fails, the club could face a points deduction, suspension or even expulsion from the Premier League. Other possible sanctions include financial penalties and restrictions on registering players. The scale of any punishment remains uncertain, but the consequences could reach beyond football, putting pressure on the club’s commercial relationships and its owners’ wider interests in the UK.
Beyond the Pitch
The UAE has expressed anger about a threat to a major instrument of soft power. The Premier League named other Emirati institutions in its findings, including Etihad Airways, which has reportedly contacted litigation firm Quinn Emanuel to prepare for legal action. State-owned telecommunications company e& and the Abu Dhabi government were also named. Yet beyond standard court challenges, other tools remain available to exert pressure.
In the past five years, Emirati investors have contributed roughly £30 billion to key growth sectors such as energy, infrastructure, real estate and life sciences. A withdrawal of investment could affect growth in these sectors. Commercial relations between Britain and the UAE run in both directions, with the UAE ranking among the UK’s major export markets. If the punishment imposed on Manchester City is severe enough, the UAE could consider reducing trade or investment with the UK, affecting businesses on both sides.
How Does This Reach Law Firms?
Quinn Emanuel has reportedly been approached over potential litigation on behalf of Etihad. Should other Emirati institutions pursue legal action, other firms could also benefit from the resulting work. Quinn Emanuel has strengthened its Middle Eastern practice with the hire of litigator Kadry Zaghawa, while White & Case has acted for another UAE conglomerate in a $1.7 billion dispute in Lebanon, placing both firms in a strong position for further work.
The threat of withdrawn investment could have wider consequences for the legal sector. Several international firms, including Eversheds Sutherland, Addleshaw Goddard and Clyde & Co, have targeted the Middle East as a focus for growth. Their cross-border reach, combined with domestic expertise, has made them a natural route for UAE investment into strategic sectors in the UK. A loss of work linked to these relationships could prove particularly challenging for firms with less diversified sources of revenue.