Manchester City has been found guilty of breaching the Premier League's financial rules and is in the process of appealing the verdict, which has been dealt a fresh blow by new "UEFA evidence"
Manchester City denies the accusations made against the club
Manchester City denies the accusations made against the club(Image: Getty Images)
Manchester City has suffered a setback in its bid to overturn the guilty verdict for financial rule breaches.
It has emerged that evidence City previously submitted to UEFA in an earlier case may potentially weaken the club's bid to exonerate itself on appeal. City was found guilty last week of breaching the Premier League's financial rules. The English top division has alleged that City orchestrated "sham" sponsorship agreements to artificially boost its revenues by more than $1 billion.
The club continues to protest its innocence and is firmly rejecting any misconduct, insisting it possesses "irrefutable evidence" to support its position. An independent three-person commission will now preside over City's appeal, with a decision expected before the year's end.
At the heart of City's defense lies the contention that the purported "sham" agreements were wholly legitimate and financed by the Abu Dhabi government, rather than by the club's owner, Abu Dhabi United Group (ADUG).
Premier League rules allow state-controlled entities to sponsor clubs, which could potentially clear City of any breach and prove that ADUG did not engineer fraudulent arrangements.
However, that defense strategy may already be under serious threat following disclosures last week that the club's title sponsors, Etihad Airways, told the United States Department of Commerce, Transportation, and State in 2015 that assertions of government-funded sponsorships were "false" during an investigation into state-owned airlines.
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Manchester City has confirmed its appeal
Manchester City has confirmed its appeal(Image: Getty Images)
The Times has now reported that documentation submitted by City to UEFA could further undermine its challenge against accusations of "sham" sponsorship arrangements. It has been claimed that City informed UEFA more than six years ago that two payments of £15 million ($20 million) each — made in 2012 and 2013 — were made by Jaber Mohamed, who held the position of general director of the United Arab Emirates' Crown Prince Court (CPC).
City is understood to have not disclosed to UEFA that Mohamed had direct connections to the CPC, instead maintaining that "the payment was caused to be made by ADUG."
It has also been reported that the payments in question were originally supposed to be made by Etisalat, one of the firms that sponsors City and is majority-owned by the United Arab Emirates. Despite City contending in its defense that the Abu Dhabi government financed the alleged "sham" sponsorship deals, it seemingly failed to disclose this to UEFA in documentation submitted years earlier.
This revelation marks a second major blow to City's appeal chances, compounded by evidence previously supplied by key club sponsor Etihad. The UAE-owned carrier provided testimony to the United States Department of Commerce, Transportation, and State in 2015 during an investigation, asserting it was "false" that the government funded sponsorship agreements.
A statement issued at the time read: "We are government-owned and have been since our founding. We are and have always been clear that we do not receive any subsidies from the Abu Dhabi government, and that we are financed through a combination of equity, shareholder and commercial loans.
"Our shareholder's equity and loans are not subsidies under any applicable definition; they are the means by which the Abu Dhabi government has sensibly invested in a successful business model."
City faces the prospect of significant penalties should its appeal fail. Expulsion from the Premier League is one possible sanction. According to Sky Sports, Premier League clubs "do not expect" City to feature in the top division next season should its appeal be dismissed.
It has also been reported that "many believe" a points deduction would be insufficient if it resulted in City spending only one season outside the Premier League. The same three-person panel that reached the guilty verdict will decide upon sanctions following the Premier League's submission of its proposals and City's presentation of its case.