According to reports, Etihad Airways is getting ready to list on a stock exchange, which might significantly affect the Premier League’s Manchester City probe
The stock market debut of Manchester City’s sponsors, Etihad Airways, may be a game-changer for the Blues, who are facing 115 Financial Fair Play (FFP) fines from the Premier League.
According to reports, banks are in talks with ADQ, the investment company based in Abu Dhabi that owns Etihad Airways, about going public as soon as this year. The main focus of the accusations against City is their sponsorship agreement with Etihad
According to a report by the German journal Der Spiegel, the airline was only making official payments to City totaling £67.5 million for the 2012–13, 2013–14, and 2015–16 seasons, with the remaining amount coming from the Abu Dhabi United Group. The accusation is based on leaked emails. According to one industry source, this would violate the financial regulations established by UEFA and the Premier League. It may also imply a fraudulent conspiracy between Etihad executives and City’s upper management.
The city declared that they “look forward to this matter being put to rest once and for all” and vehemently denied the accusations. “Manchester City FC is surprised by the issuing of these alleged breaches of the Premier League Rules, particularly given the extensive engagement and vast amount of detailed materials that the EPL has been provided with,” the club stated in a statement released in February 2023.
“The club is pleased that an independent commission will be reviewing this issue and objectively weighing the substantial amount of unquestionable information that the club has to offer to support its stance. We therefore anticipate that this issue will be resolved once and for all.”
It has been reported recently from the Middle East that Etihad is preparing for an IPO. This could provide the club the opportunity to finally close the issue by making their finances public, according to The Mirror.
Stock market experts believe it is improbable that Etihad would permit such access if it were to expose fraud evidence. An influential person in the investment banking sector told The Sunday Mirror that “if it came to light that Etihad executives were indeed involved in manipulating the sponsorship deal with City, it could cause serious damage to the company’s reputation in the eyes of potential investors.”
Before the IPO was announced, Etihad would also have to reveal the results of any current investigations into the company’s finances or behavior.
“What the Premier League are alleging is extremely serious, not just in terms of football’s rules and regulations,” they said. “City executives are accused of lying to the Court of Arbitration for Sport as well as to the club’s independent auditors and conspiring with Etihad authorities.
“Consequently, that also raises questions about what details City’s owners gave Silverlake prior to the American private equity firm acquiring a sizeable share of the team in 2019.” Because of this, the Premier League’s accusations against City extend far beyond their alleged inability to comply with Profit and Sustainability Rules.
CAS reversed a two-year Champions League ban imposed on the club by UEFA for noncompliance with FFP regulations nearly four years ago, ruling that any insinuation of a conspiracy involving executives of both City and Etihad, as well as high-ranking Abu Dhabi officials and even members of the country’s Royal family, was implausible. Sheikh Mansour, the owner of City, wrote a letter in support of the appeal throughout the proceedings.
In addition, City’s £25.75 million fine was canceled, but they still had to pay £8.6 million in fines for their failure to cooperate with UEFA’s probe. Since a 10-year agreement was first revealed in the summer of 2011, City has been sponsored by Etihad, a state-owned airline at the moment.
