It could have a big say in how the investigation progresses
Manchester City's sponsors are considering a decision that could affect the entire Premier League investigation.
In February 2023, the Treble winner was accused of breaching 115 Premier League financial rules, most of which related to sponsorship deals.
Among the many accusations against them, inflating the value of sponsorship deals is one of the most common, with many of the funds for these deals allegedly coming directly from the club's owners, Abu Dhabi United Group.
But in the latest development, Germany's Der Spiegel claims leaked emails show main sponsor Etihad Airways paid only part of Manchester City's £67.5m official debt for the 2012-13, 2013-14 and 2015-16 seasons. of £8 million. The remaining funds are provided by the owners.
If the allegations are true, it would be a serious breach of Premier League and UEFA financial rules and suggest fraudulent activity between City and airline executives.
City denied the allegations and “welcomed the independent committee's review of the matter”, adding that they “look forward to the matter being fully resolved”.
Further reports now suggest that Etihad is in discussions with banks about the possibility of listing on the stock exchange, a move that could affect the outcome of the ongoing investigation.
Etihad Airways is reportedly preparing for an initial public offering (IPO), the process of opening its accounts to everyone before going public.
An investment banking expert told the Mirror that Eithad was unlikely to allow such access if it faced the risk of sponsorship deals being tampered with. This could ultimately amount to fraud and would almost certainly impact any dealings with future investors.
A source said: “The allegation is that Manchester City executives colluded with Etihad officials to lie not only to the club’s independent auditors but also to the Court of Arbitration for Sport.
“By extension, it also calls into question what information the Manchester City owner disclosed to Silver Lake before the US private equity firm bought a significant stake in the club in 2019.
“That's why the Premier League's accusation goes beyond accusing City of failing to meet profit and sustainability rules.”
An independent panel is expected to hear City's case later this year.
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