UAE warns of UK investment impact over potential Manchester City punishment

Government officials in the United Arab Emirates have warned Britain that future investment could be reduced depending on the severity of the punishment Manchester City receives over alleged financial breaches.

The warning follows a ruling this week by an independent Premier League commission, which found the club guilty of financial offences. Potential sanctions range from a fine and points deduction to relegation, or even expulsion from professional football.

According to Bloomberg, as reported by Spanish newspaper Marca, Emirati officials told the UK government that the anticipated punishment could affect the UAE’s “willingness to invest and enter into wide-ranging commitments in the United Kingdom”.

An Abu Dhabi investment fund took control of Manchester City in 2008 and has invested heavily in the club since then.

The Premier League’s findings state that Manchester City committed financial breaches worth more than €1bn between 2009 and 2018. The alleged offences involved the inflation of sponsorship income, much of it through UAE-based companies.

Bloomberg data indicates that the UAE has invested more than £30bn (€36bn) in important areas of the British economy over the past five years. Those sectors include defence, science and technology.

The two countries are also planning to hold a summit in October this month.

UK officials express frustration

The agency reported that British government officials are “frustrated” by the UAE’s position in the case. They believe the Emirati side was aware of Manchester City’s alleged breaches over a period of almost a decade, while the club continued to insist that it had committed no wrongdoing.

The dispute intensified after controversial comments from British Prime Minister Andy Burnham.

Burnham said it would be “extremely concerning” if Manchester City’s owners were forced to give up the club as a result of the scandal. He later withdrew from that position.

Hours afterwards, a spokesperson for the UK prime minister’s office in Downing Street issued a statement stressing 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 announced on Friday that it had submitted a formal appeal against the decision relating to the financial offences.

A final ruling in the case is expected by January.