Blackmail? UAE warns UK it could pull billions in investments over Manchester City ruling

UAE warns Man City punishment could affect relations with the UK

The United Arab Emirates has reportedly warned Britain that billions of pounds in future investment could be at risk following Manchester City’s guilty verdict over breaches of Premier League financial rules.

According to The Telegraph, UAE officials have raised the possibility of abandoning billions of pounds in private investment earmarked for a technology hub in the Oxford-Cambridge corridor. The warning comes amid concerns in Abu Dhabi over possible sanctions against City.

Emirati officials reportedly said “the Premier League’s actions” would “have an influence on the bilateral state relationship.”

Manchester City were found guilty by an independent commission of serious financial-rule breaches covering nine seasons. The Premier League said the commission concluded that the club arranged “sham” commercial deals involving sponsors as part of disguised funding arrangements.

City have appealed the ruling and maintain their innocence, saying the decision “contains clear material errors, of law, principle and fact and is unsafe”. No final punishment has yet been determined.

The dispute has taken on wider diplomatic and economic significance because of the scale of UAE investment in Britain.

Khaldoon Al Mubarak, Manchester City’s chairman, previously served as chief executive of Mubadala, Abu Dhabi’s sovereign investment fund. Mubadala committed £10 billion to UK investments in 2021, targeting sectors including technology, infrastructure, clean energy and life sciences.

The Telegraph reported that Al Mubarak met Business Secretary Jonathan Reynolds in Downing Street about two weeks before the Premier League announced its decision. Reports said their discussions covered broader bilateral issues and did not include the City case.

Prime Minister Andy Burnham has also faced scrutiny after expressing concern about the possibility of City losing their current ownership.

“I would be really concerned to lose them. They’ve been such a huge partner in the building of modern Manchester. Obviously, the building of Manchester City into the global force that it is,” Burnham said.

Downing Street subsequently stressed that the commission’s findings were “serious,” while maintaining the independence of football’s disciplinary process.

The UAE warning raises the prospect that the City dispute could extend beyond football into Britain’s economic relationship with Abu Dhabi. However, there is currently no indication that the threatened investments have formally been cancelled, while City’s appeal remains unresolved.