The United Arab Emirates has warned Britain that the severity of any punishment imposed on Manchester City could affect its willingness to invest in the United Kingdom.
The warning follows a ruling by an independent Premier League commission, which found the club guilty of financial breaches this week. Manchester City has since announced that it will formally appeal the decision, with a final verdict in the case expected by January.
According to Marca, citing financial news agency Bloomberg, Emirati officials have told the British government that the anticipated sanction could influence the UAE’s “willingness to invest and make wide-ranging commitments in the UK”.
The possible penalties range from a financial fine and points deduction to relegation to a lower division. The most serious outcome would be exclusion from professional football.
A fund based in Abu Dhabi acquired Manchester City in 2008 and has invested heavily in the club since then. The Premier League’s findings concluded that the club committed financial breaches worth more than €1bn between 2009 and 2018 by inflating sponsorship revenues, much of it through Emirati companies.
Bloomberg data shows that the UAE invested more than £30bn (€36bn) in important sectors of the British economy during the past five years. Those investments include defence, science and technology. The two countries are also planning to hold a summit in October.
However, the agency reported that British government officials are “frustrated” by the UAE’s position in the Manchester City case. They believe the Emirati side was aware of the alleged breaches, which they say continued for almost a decade, while maintaining that no wrongdoing had taken place.
The dispute intensified after controversial comments from British Prime Minister Andy Burnham. He said it would be “extremely concerning” if Manchester City’s owners were forced to give up the club because of the scandal, before later retreating from that position.
A spokesperson for the British Prime Minister’s office in Downing Street issued a statement several hours later, saying that nobody was above the law. The spokesperson added that anyone found responsible for breaches would have to face the consequences of their actions.
Manchester City has consistently denied the allegations and is now challenging the commission’s decision through an official appeal. The case has raised the prospect of a significant dispute between the club’s ownership and English football authorities, while the potential impact on wider UK-UAE economic ties remains a concern for both governments.
