UAE warns UK government over Man City sanctions

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FT Desk

The United Arab Emirates has reportedly warned the United Kingdom government that severe sanctions brought on Manchester City could impact potential investment in the UK in the future.

Last week, the football world went into meltdown when news broke that Man City had been found guilty of 114 of 115 charges of financial breaches for a period between 2009 and 2018.

They were accused of a number of breaches but the most egregious were to do with sponsorships that were inflated by companies owned by Abu Dhabi, staff members like Roberto Mancini being paid via two sources and failing to cooperate with the Premier League's initial investigation.

No punishment has been confirmed yet but speculation ranges from monetary fines, to points deductions, or even relegation.

Some pundits like Jamie Carragher suggested that the current owners cannot continue in the Premier League after the guilty verdict.

United Kingdom PM Andy Burnham initially received criticism for his response to the charges. Asked by the BBC if he was concerned that Man City's Abu Dhabi owners would now sell the club, Burnham said on Wednesday:

"I would be really concerned to lose them.

"They've been such a huge partner in the building of modern Manchester and obviously the building of Manchester City into the global force that it is.

"I do actually thank the City Football Group and the wider ownership for the money that they didn't just put into the Etihad [Stadium] and the campus around it but also into the city".

However, he would later backtrack on those comments by saying that nobody is "above the law".

The Abu Dhabi owners of Manchester have previously been credited with investing billions of pounds into the city, including charitable initiatives.

It has now been confirmed by Bloomberg that the UAE is now putting pressure on the UK to be lenient in any punishment for Man City, or it will put Abu Dhabi off "grand-scale" investments.

Journalist Alex Wickham posted on social media:

"UAE officials have warned the UK government that the severity of Man City’s punishment could undermine their appetite for future grand-scale commitments in Britain, 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

"The extraordinary pressure comes after Andy Burnham faced criticism, including from within government, for saying Man City’s Abu Dhabi owners should not be disqualified specifically because of the investment they bring to Britain."

According to Bloomberg, the UAE has invested more than £30 billion ($39.7 billion) in the UK within the last five years.

The eventual punishment for City, whatever it may be, is causing diplomatic tension between the UK and the UAE.