Manchester City's appeal against the guilty verdict for 114 Premier League charges has suffered a second blow, with evidence given by the club to UEFA potentially undermining their defence. The club was found guilty last week on 114 of 115 charges relating to breaches between 2009 and 2018, with the Premier League claiming 'sham' sponsorship deals inflated revenues by £900million. City denies any wrongdoing and maintains its innocence, citing 'irrefutable evidence' to clear its name.
UEFA evidence could undermine appeal
An independent commission of three people will oversee City's appeal, with an outcome expected before the end of the year. A key part of City's defence is that the 'sham' deals were legitimate and paid by the Abu Dhabi government, rather than the club's owners in the Abu Dhabi United Group (ADUG). The Premier League allows state-owned bodies to sponsor clubs, which could help clear the club of wrongdoing and prove ADUG did not manufacture illegitimate deals.
However, that defence could already be in tatters after it emerged last week that the club's title sponsors, Etihad Airways, told the United States Department of Commerce, Transportation, and State in 2015 that reports of the government paying for sponsorships were "false" during an investigation into state-owned airlines. Now The Times reports that evidence given by City to UEFA could further undermine their appeal against the 'sham' sponsorship claims.
Payments from Jaber Mohamed
It has been reported that City told UEFA over six years ago that two payments worth £15million each - in 2012 and 2013 - were made by Jaber Mohamed, who was the United Arab Emirates' Crown Prince Court's (CPC) general director. City reportedly did not inform UEFA of evidence that Mohamed had links to the CPC, and instead said "the payment was caused to be made by ADUG." The payments should have been made by Etisalat, one of the companies that sponsors City and is majority owned by the United Arab Emirates.
Despite City claiming in their defence that the Abu Dhabi government paid for the 'sham' sponsorship deals, they apparently did not inform UEFA of this in evidence given years ago. The update comes as a second blow to City's hopes of succeeding with their appeal, thanks to past evidence given by Etihad.
Expulsion threat looms
Etihad gave evidence to the United States Department of Commerce, Transportation, and State in 2015 during an investigation that it was "false" that the government paid for sponsorship deals. A statement 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 serious sanctions if their appeal fails, with Premier League clubs agreeing they should be expelled from the top flight and face punishments over several seasons. Expulsion from the Premier League is one possible sanction, although it would require 15 clubs to vote in favour. According to Sky Sports, Premier League clubs 'do not expect' City to remain in the top flight next season if their appeal fails. It has also been claimed that 'many believe' a points deduction would not be sufficient if it resulted in City spending just one season outside the Premier League. The same three-person panel that delivered the guilty verdict will decide on sanctions after the Premier League put forward their recommendations and City argues its case.