Etihad Airways Weighs Legal Action Against Premier League

Etihad Airways, which sponsors both Manchester City's shirts and its stadium, said it may pursue a legal case against the Premier League after an independent commission issued a September 30 ruling that the club had violated financial rules, with the airline noting that it had no contact with the league throughout the inquiry.¹²⁴

Commission findings

An independent commission published its core decision on Manchester City's financial conduct on September 30, concluding that the club breached Premier League rules. According to Sky Sports, the commission found City had arranged sham commercial contracts with sponsors as part of a scheme to artificially inflate revenues by £830m between the 2009/10 and 2017/18 seasons, and that City broke well over 100 Premier League regulations, with three of four alleged categories of breach upheld and one not proven. Asharq Al-Awsat and other outlets reported the figure for inflated revenues and understated costs at more than £900m over nearly a decade. The Guardian reported the commission's conclusion that City had artificially inflated revenues through sham sponsorship contracts secretly funded by its owners. It is also confirmed that City was significantly in breach of both Premier League and UEFA spending limits.¹²³⁶

Manchester City says it plans to appeal, arguing the ruling is flawed on legal, procedural and factual grounds, and continues to deny any wrongdoing, according to The National and Blueprint Newspapers. The club has been given until Friday to lodge its appeal.⁴⁵³

Etihad's objections

Etihad Airways, Abu Dhabi's national carrier and City's principal sponsor since 2009, issued a statement rejecting the guilty verdicts. According to The Guardian, the airline argued that the way the Premier League publicly disclosed the findings cast an unfair shadow over Etihad despite the company not being identified in the redacted ruling, and that it had no chance to present its side or submit information during the probe.¹⁵

Etihad said: "At no time did the Premier League reach out to or engage with Etihad in the process." The airline added it "categorically rejects any finding, conclusion or implication that suggests the airline has ever been involved in improper commercial arrangements" and said it "will seek the relevant legal counsel on the options and recourse available to protect its interests."⁴

Citing Reuters, reports indicated the airline is weighing possible legal steps to safeguard its position, even as it reaffirmed its backing of Manchester City. Etihad has been described by Sky Sports as having signed a 10-year sponsorship deal worth £400m in 2011 and as a company worth around £4 billion, though these figures are reported by a single source.⁷²

Reaction and outlook

Premier League chief executive Richard Masters called the case "most significant in Premier League history," according to Asharq Al-Awsat. Former Manchester City manager Pep Guardiola publicly backed the club online, writing, "I am, always have been, always will be, behind my club, my owner, my chairman," and in another post stating plainly that the club would overcome the situation together. I love you all." Former defender Micah Richards described the situation as devastating, while former chairman David Bernstein said the club would have to accept sporting consequences if its appeal fails.³

Greater Manchester mayor Andy Burnham said he would be troubled if City's Emirati owners were to leave, remarking, "I would be really concerned to lose them." Asharq Al-Awsat reported that independent football regulator David Kogan noted his body is authorized to review whether club owners remain fit and proper when solid proof of misconduct exists.³

The Japan Times noted that several key issues are still up in the air, such as the timing of any sporting penalties, and that a City appeal might push back enforcement, stretching the matter out over several years. Manchester City are scheduled to play Liverpool at Anfield on October 11.⁶³