Left image: Action Images via Reuters/John Clifton Right image: REUTERS/Phil Noble
The United Arab Emirates have warned UK Prime Minister Andy Burnham that billions of pounds of investment will be pulled due to the guilty verdicts in Manchester City's legal case.
City were found guilty of financial irregularities by the Premier League earlier this week but have submitted an appeal while maintaining their innocence. They are set to claim that commercial contract payments labeled 'shams' by an independent commission were government-funded.
This claim contradicts their previous position and only further fuels talk of state ownership as the Premier League prepare to punish the club. What is the biggest scandal in British sporting history has now become a diplomatic row involving the UAE, Burnham and the UK.
UAE Make UK Financial Threat Amid Man City Scandal
Action Images via Reuters/Lee Smith
A report from The Telegraph has revealed that the UAE are threatening to pull billions of pounds that the UK government had been seeking in private investment for a hi-tech hub between Oxford and Cambridge. This has been billed as the UK's answer to Silicon Valley and highlights just how much of an international issue City's legal battle has become.
Burnham came under immense scrutiny a few days ago when he said that he would be "really concerned" if the UAE were to sell the club due to the guilty verdicts. After receiving backlash, a spokesperson speaking on his behalf backtracked by insisting that no team is "above the rules."
City chairman Khaldoon Al Mubarak is said to have met Jonathan Reynolds, the Business Secretary, at Downing Street just 11 days before the Premier League announced the decision. The Department for Business and Trade claimed that City's situation wasn't part of their discussions but rather they focused on trade, defence and security.
Mubarak is believed to have known about the guilty verdict at the time of the meeting, but those details weren't made public at the time. Emirati officials have warned the UK about pulling billions of pounds in the meantime while details from the meeting have been kept secret.
UK Government Met With Mubarak Over Oxford-Cambridge Scheme
Manchester City chairman Khaldoon Al Mubarak
Along with his role as Manchester City chairman, Mubarak also serves as chief executive of Mubadala, one of the UAE's sovereign wealth funds which is purported to have around £300bn of assets. Communication started between Mubarak and former UK Government Minister for Investment UK Lord Jason Stockwood back in February when the latter invited Mubadala officials to visit the Oxford-Cambridge scheme.
In documents provided by The Telegraph, Lord Stockwood wrote a letter to Mubarak inviting him and his team and investment teams for a meeting while also inviting the City chief to visit Grimsby Town's home ground. The member of the House of Lords is the former chairman of the EFL League Two outfit and said that it "would also be an absolute pleasure to host you in Grimsby."
After Burnham replaced Sir Keir Starmer as Prime Minister, Lord Stockwood stepped down as a minister in July. He has declined to comment on claims that Abu Dhabi investment was at risk due to the City scandal.
The Mayor of Manchester, Andy Burnham after the match
The Mayor of Manchester, Andy Burnham after the match
The UAE are said to have provided more than £30bn to major UK sectors in the past five years. But there is a real possibility that future deals are derailed if the guilty verdicts stand and City are handed a severe punishment.
Former chancellor Rachel Reeves previously claimed that the development of the Oxford-Cambridge corridor could pour £78bn into the UK economy by 2035. The Government were seeking £10bn in private investment and viewed Abu Dhabi as key to the proposals.