Manchester City’s long-running financial case may yet reach beyond the usual arguments over sponsorship income and rulebooks. Khaldoon Al Mubarak, the club’s Emirati chairman, was granted diplomatic immunity six years ago, a status that could make any personal legal action in Britain considerably more difficult.
The protection is understood to shield Al Mubarak from criminal prosecution in the UK and, in most circumstances, from civil proceedings. Lawyers believe that could complicate attempts to bring a claim against him individually once the City case has run its course.
Quick facts
- Khaldoon Al Mubarak obtained diplomatic immunity six years ago.
- The Premier League alleges that City misstated its financial position by more than €1.05bn.
- City are accused of using arrangements that overstated commercial revenue and reduced reported costs.
- Etihad, a major City sponsor, rejects the allegations and is considering legal action against the Premier League.
- Al Mubarak oversees a sovereign investment vehicle linked to €35.129bn of UAE investment commitments in Britain.
The Premier League’s case centres on allegations that Manchester City used contracts which did not reflect the true terms agreed with a number of commercial partners. It also alleges that other arrangements were constructed in a way that enabled the club to raise stated income artificially while cutting apparent expenditure.
At the heart of the accusations are sponsorship deals said to have carried unusually high values. The sponsors involved are alleged to have paid only part of the sums set out in those agreements, with Abu Dhabi United Group Investment & Development Ltd, City’s owner, meeting the remainder.
The league argues that the structure allowed City to show greater revenue than it had genuinely earned from those partners. In turn, that would have given the club more room to spend within the competition’s financial regulations.
Those allegations concern more than €1.05bn in what the Premier League says was an inaccurate presentation of City’s finances. City’s chairman now occupies a potentially significant position in any wider legal fallout, given the diplomatic status attached to him in Britain.
There is also a diplomatic backdrop. Al Mubarak oversees a sovereign investment organisation that has produced €35.129bn in UAE investment commitments towards the UK, meaning the outcome could place added strain on relations between London and Abu Dhabi.
Etihad, the UAE airline and one of Manchester City’s principal sponsors, has denied the accusations connected with the club. It is weighing its own legal response to the Premier League, adding another front to a case that has already become far larger than a dispute over the books.
