Come fly with me, FFP
MAIN SPONSORS ETIHAD – AT THE HEART OF CITY ALLEGATIONS – LOOK TO FLOAT AIRLINE... AND THAT MEANS REVEALING ALL ACCOUNTS
A PLAN to float Etihad Airways on the stock exchange could be a good omen for Manchester City in their bid to beat the 115 Premier League charges hanging over the club.
Arrangements concerning City’s longstanding sponsorship deal with Etihad are a significant element in the allegations made against the reigning champions.
German publication Der Spiegel has alleged that the Emirati airline was actually paying just £8million of their official £67.5m obligation to City – and that the rest was being met by disguised equity funding from the club’s Abu Dhabi owners.
If shown to be true, that would break the financial regulations put into place by both the Premier League and UEFA – and might also be tantamount to a fraudulent conspiracy being hatched between City’s boardroom bosses and Etihad executives.
Reports in the Middle East have now revealed that the airline is being prepared for an Initial Public Offering.
And that process would involve Etihad allowing full disclosure of their accounts.
Stock market insiders believe that it’s unlikely that Etihad would be willing to grant such exposure of their financial affairs and corporate practices if they thought that might uncover evidence to prove fraud had been committed.
A senior figure in the investment banking industry said: “If it came to light that Etihad executives were involved in manipulating the sponsorship deal with City, it could cause serious damage to the company’s reputation in the eyes of potential investors.
“Etihad would also have an obligation to disclose any ongoing investigation into the company’s accounts or conduct before the IPO was launched.
“What the Premier League are alleging is extremely serious, not just in terms of football’s rules and regulations.
“The accusation is that City executives have colluded with officials from Etihad and have lied not only to the club’s independent auditors but to the Court of Arbitration for Sport (CAS).
“By extension, that also calls into question what information was disclosed by City’s owners to Silverlake before the American private equity firm bought a significant stake in the club in 2019.
“That’s why the Premier League’s allegations actually go way beyond accusing City of failing to meet Profit and Sustainability Rules.”
Almost four years ago CAS ruled that any suggestion 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 beyond the realms of possibility, when they overturned a two-year Champions League ban levied against the club by UEFA for failing to meet FFP regulations.
City owner Sheikh Mansour had submitted a letter during proceedings to support their appeal. City also had a £25.75m fine overturned, but were handed an £8.6m censure for failing to cooperate with UEFA’S investigation.
Etihad, a state-owned airline, have sponsored City since 2011. It has been speculated that an IPO launch could come later this year – just as the Independent Commission appointed by the Premier League to examine the charges levied against City is expected to make a judgement.
The Premier League champions continue to maintain their innocence.