Manchester City: Etihad move to sue Premier League

Spread the word Etihad Airways, the principal sponsor of Manchester City, is considering legal action against the Premier League following the publication of an independent commission's findings into the club's long-running financial rules case. The Abu Dhabi-based airline said it was examining its legal options after the Premier League.

Blueprint reports Etihad also strongly rejected any suggestion that it had been involved in improper commercial arrangements with Manchester City. The development comes shortly after an independent commission found Manchester City guilty of serious breaches of Premier League financial rules covering a nine-season period.

The league said the commission found that the club had used "sham" commercial arrangements involving several sponsors as part of a scheme that artificially inflated revenues and reduced costs by more than £900 million. Etihad challenges Premier League handling According to a statement issued to The Times, Etihad expressed concern that the Premier League never contacted or engaged the airline during the investigation and subsequent proceedings.

The airline said it was therefore not given an opportunity to provide relevant information or respond to issues that could potentially affect its reputation. Etihad argued that the Premier League's public communication of the commission's findings, following what it described as a period of selective leaks and reporting, had created damaging implications for the airline.

The airline said it was considering the available legal avenues to protect its interests, although it has not announced that formal proceedings have been filed against the Premier League. Etihad has been Manchester City's principal sponsor since 2009 and remains a major commercial partner of the club.

Commission findings The dispute follows the publication of the independent commission's judgment into the Premier League's 115 charges against Manchester City. The Premier League said the commission found that City had arranged commercial contracts with several sponsors in a manner that did not reflect the actual financial arrangements between the parties.

According to the league, the commission found that some sponsors were required to pay only part of the sponsorship fees recorded in the relevant agreements, with the remainder allegedly funded by Abu Dhabi United Group Investment & Development Ltd, which owned the club. The Premier League said the commission concluded that the arrangements had the effect of artificially increasing City's reported revenue and reducing costs, allowing the club to appear compliant with applicable financial regulations.

The league said the commission also found City guilty of three of four charges relating to its alleged failure to cooperate with the investigation. Manchester City have rejected the commission's conclusions and said they intend to appeal, arguing that the decision contains material errors of law, principle and fact.

Airline maintains sponsorship relationship Despite the dispute, Etihad has reaffirmed its longstanding relationship with Manchester City. The airline's latest position is focused on the potential reputational consequences of the Premier League's publication of the commission's findings and what it regards as the absence of an opportunity to respond during the proceedings.