Etihad Considers Legal Action
Etihad Airways Considers Legal Action Following Manchester City Premier League Financial Rule Breaches
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Key Points
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The commission said City used contracts with commercial partners that misrepresented the true agreements, and found that the arrangements inflated revenues and reduced reported costs by more than £900 million between 2009 and 2018.
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In addition to the financial-rule findings, three of four charges that City failed to cooperate with the Premier League’s investigation were upheld.
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Asahi, a Japanese drinks group that partnered with City Football Group in 2022, said it was monitoring developments while noting City’s plan to appeal.
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Etihad’s sponsorship relationship expanded in 2011 under a reported 10-year, £400 million agreement that included naming rights to the stadium and surrounding campus.
Etihad Airways, Manchester City's principal sponsor since 2009, is seeking legal advice on potential action after an independent commission found the club guilty of serious financial breaches. Sky Sports reported that Etihad categorically rejects any suggestion it was involved in improper commercial arrangements and says the Premier League damaged its reputation through public communications, despite never naming the airline in the redacted findings.
The commission concluded Manchester City used fake commercial contracts to hide owner payments as legitimate sponsorship income, inflating revenues and cutting reported costs by more than £900 million between 2009 and 2018. Reuters noted that City denies wrongdoing and plans to appeal, while any punishment remains undecided. The airline also complained it was never contacted during the investigation, leaving it no chance to respond.
How Manchester City Hid Hundreds of Millions in Finances
The independent commission found that Manchester City arranged what The Athletic called "sham" agreements with commercial partners to disguise direct owner equity payments as real sponsorship income. These fake contracts artificially inflated revenues while hiding costs. Between 2009 and 2018, this scheme added more than £900 million in false revenue and cut reported expenses.
BBC Sport reported the panel upheld 114 of 115 charges against City. The club also failed to cooperate fully with the Premier League's investigation, with three of four non-cooperation charges proven. Manchester City CEO Ferran Soriano has rejected the findings as "conspiracy theory," The Guardian reported.
Etihad Claims Its Reputation Was Damaged Unfairly
Etihad says the Premier League never asked it for its side of the story before releasing the findings to the public. According to the airline's statement, ESPN reported that this procedural failure left Etihad unable to defend itself. The airline was not named in the redacted report, yet public coverage still connected it to the scandal, damaging its brand reputation and business interests.
Etihad has been City's main sponsor since 2009 and agreed to a reported £400 million, 10-year deal in 2011 for stadium naming rights and sponsorship. Financial Times noted that the airline's legal advisors are now exploring options, including potential High Court action against the Premier League for defamation and reputational harm.
Manchester City Promises to Fight the Ruling in Court
Manchester City has until October 2 to formally file its appeal against the commission's verdict, Sky Sports reported. The club has denied all wrongdoing and plans a vigorous legal challenge. Specific sporting and financial punishments—such as fines or point deductions—remain undecided pending the outcome of the appeal.
Meanwhile, The Athletic noted that Asahi, a Japanese drinks company that partnered with City Football Group in 2022, is monitoring developments closely. Other Premier League rivals are also considering civil claims against City for damages linked to lost prize money and missed European qualification during the 2009–2018 period, according to legal analysts.
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