The UAE government has warned that it may reduce its investments in Britain, depending on the severity of the penalty Manchester City might face after being found guilty of financial breaches by an independent panel appointed by the Premier League.
According to Bloomberg, Emirati officials informed the British government that the sanction to be imposed on Manchester City could affect the willingness to make significant investments and commitments in the United Kingdom.
An independent panel had previously found Manchester City guilty of serious breaches of the Premier League's financial rules between 2009 and 2018, concluding that the club used sham sponsorship deals to manipulate its revenues and understate its costs by more than £900 million.
The UAE's connection with Manchester City dates back to 2008, when an Abu Dhabi investment fund acquired the club, since when the team has received substantial investments.
Potential sanctions facing Manchester City range from fines and point deductions to relegation, up to possible exclusion from English competitions, although the final penalty has not yet been determined.
According to Bloomberg, the UAE has invested over £30 billion in key sectors within Britain during the past five years, including defense, science, and technology, while a summit between the two countries is scheduled for this October.
Reports indicated dissatisfaction within the British government regarding the UAE's stance on the case, after the panel concluded that significant funding from sponsorship contracts linked to Abu Dhabi actually came from the Abu Dhabi United Group, which owns the club—a finding rejected by Manchester City.
Manchester City has already filed a formal appeal against the independent panel's decision, stating that the ruling contains fundamental errors in law and fact, and that it possesses evidence supporting its position. An independent three-member appeals panel is expected to review the challenge.
These developments come amid concerns about the impact of the case on economic relations between Britain and the UAE, as British authorities continue to monitor the repercussions of the ruling before taking any further action.