Manchester City verdict strains U.K.-UAE diplomatic relations

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeNewsManchester City verdict strains U.K.-UAE diplomatic relationsOver the past five years, the UAE has poured more than US$39.7 billion into major U.K. sectorsAuthor of the article:Alex Dooler, Dinesh Nair and Alex WickhamPep Guardiola voiced his strong support for Manchester City on September 30, 202. Photo by Oli SCARFF / AFP via Getty ImagesA historic legal ruling against Manchester City Football Club has placed diplomatic ties between the U.K. and the United Arab Emirates under significant strain, with billions of pounds in projected foreign investment at stake.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountOver the past five years, the UAE has poured more than £30 billion (US$39.7 billion) into major U.K. sectors, including defence, life sciences and technology. The two nations are eager to maintain their financial partnership, and an investment summit is penciled in for this month, but frustration on both sides has escalated due to the fallout surrounding the Manchester City case.This advertisement has not loaded yet, but your article continues below.In a seismic judgment late last week, Abu Dhabi-owned Manchester City was found guilty of all but one of 115 charges brought against it by England’s Premier League after a four-year investigation. The club artificially inflated its financial results by more than £900 million (US$1.2 billion), according to the findings of an independent commission published Tuesday. Potential punishments include a points deduction, heavy fines or even expulsion from the Premier League.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe ruling is a major blow for the 18-year soft power project, at the top of which is Manchester City’s ultimate owner, Sheikh Mansour bin Zayed Al Nahyan, the brother of the UAE’s president. The Emirati owners, with Khaldoon Al Mubarak as the club’s chairman, have delivered eight premier league titles and transformed the club into a footballing superpower.Emirati officials have warned the U.K. government that the severity of the ruling could undermine their appetite for future grand-scale U.K. commitments, according to people familiar with the matter. They consider the Premier League’s actions to have an influence on the bilateral state relationship, the people said, asking not to be identified discussing undisclosed information.This advertisement has not loaded yet, but your article continues below.U.K. government officials are equally frustrated by the conduct of their UAE counterparts in relation to the scandal, according to other people familiar with the matter. They believe some in the Gulf nation must have been aware of the extent of Manchester City’s wrongdoing, even while insisting there was nothing untoward, said the people, who asked not to be identified talking about private deliberations.The scandal has also caused splits in the U.K. government. Prime Minister Andy Burnham’s comments thanking Manchester City’s owners for their investment riled his own politicians who want to keep the process independent of government influence.A spokesman for the U.K. government declined to comment. The UAE’s Foreign Ministry did not respond to a request for comment.The frustration from both sides comes at a crucial time for U.K.-UAE relations. The current investment partnership is up for discussion ahead of an Abu Dhabi summit to be held in London later this month, with British officials eager to secure more commitments.Under the original five-year agreement, the UAE’s sovereign wealth fund Mubadala, led by Mubarak, committed £10 billion (US$13.3 billion) to British industries, though the total has reached nearly £30 billion. That’s been a small part of a global commitment: Abu Dhabi, home to wealth funds holding more than US$2 trillion of assets, is planning to invest another US$1.4 trillion in the U.S. and has pledged US$46 billion in Germany.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Defence is central to U.K.-UAE talks, with the need for cooperation heightening due to the ongoing U.S.-Iranian war and wider unrest in the Middle East. The U.K. lent military support to the UAE after the U.S. and Israeli attacks on the Islamic Republic prompted Tehran to retaliate against Washington’s Gulf allies.Despite both sides agreeing that talks on defense are far more important than football, the Premier League’s judgment has injected political tension into the negotiations. Longer standing issues remain contentious, including the UAE’s alleged role in the Sudanese civil war and the thwarted Emirates-backed takeover attempt of The Telegraph newspaper.Officials are now trying to smooth over the issue. In a U.K. media interview on Wednesday, Burnham thanked City Football Group — the owners of Man City — for their investment in Manchester.“I would be really concerned to lose them,” Burnham said. “They’ve been such a huge partner in the building of modern Manchester.”The relationship is important to Burnham and fellow senior politicians. Shortly after becoming Prime Minister in July, Burnham spoke to UAE President Sheikh Mohamed bin Zayed Al Nahyan. They connected over Manchester, where Burnham was mayor before ascending to the top job. Massive Emirati capital injections into urban regeneration across the east of the city helped bolster Burnham’s political profile during his tenure.This advertisement has not loaded yet, but your article continues below.U.K. government officials have privately suggested that Premier League investigations are outside their control, given sporting regulation and judicial matters are not subject to state influence.The team has appealed the decision and said in a statement on Friday that the “club is innocent of the accusations made by the Premier League and a comprehensive body of irrefutable evidence exists in support of all of its positions, relating to this case.”Manchester City has been one of the UAE’s most successful outlets for projecting soft power. Under Sheikh Mansour’s ownership, the club came out of the shadow of crosstown competitor Manchester United and usurped its historically more successful rival as a perennial challenger for league titles. It’s attracted a string of star players, notably Sergio Aguero, Kevin De Bruyne and current striker Erling Haaland.The league has yet to set out sanctions, but the guilty verdict already threatens to upend the Premier League and football in England more widely. Manchester City’s haul of trophies during the period in question potentially opens the door to compensation claims from rival clubs and even fans.This advertisement has not loaded yet, but your article continues below.While no prosecutor is known to be looking at criminal charges, false accounting is a crime in England and Wales that carries potential jail terms. Meanwhile, the club’s auditors could face a probe from the Financial Reporting Council. Neither regulator responded to requests for comment.The U.K. has long touted its investment links with the UAE. A little over a week before the Manchester City verdict, Burnham posted a video to his almost one million TikTok followers showing him inside a McLaren sports car boasting “that is the sound of Britain making things again.”Burnham’s comments came as McLaren Automotive announced plans to invest £500 million into the U.K., part of a larger commitment from McLaren Automotive shareholder L’IMAD Holding, a sovereign investor of the Government of Abu Dhabi.But the prime minister’s recent comments backing Manchester City’s owners have riled local lawmakers. They risk undermining legislation aimed at preserving the operational autonomy of the Independent Football Regulator, which is responsible for determining the outcome of the case against Manchester City, Bloomberg reported.Downing Street later issued a statement saying Manchester City are not “above the rules.”With assistance from Anand KatakamThis advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.