Manchester City will argue in their appeal to the Premier League that the government of Abu Dhabi, not the club's owners, funded key sponsorship deals. This is the key argument in the appeal following the club being found guilty of breaching financial rules.
On Tuesday, it was confirmed that an independent panel found City guilty on all points of the charge relating to breaches of the Premier League's financial regulations between the 2009-10 and 2017-18 seasons. The club, which has denied the charges, has stated it will lodge an appeal by Friday.
City were found to have inflated their revenue through 'fictitious' sponsorship deals backed by their owners. The Abu Dhabi United Group (ADUG) – a private investment company owned by the UAE's Deputy Ruler and Prime Minister, Sheikh Mansour – is alleged to have topped up the value of commercial deals in a 'hidden funding scheme' to the value of £830.69 million. This, it is claimed, allowed the club to appear compliant with the financial rules of the Premier League and UEFA.
Sources told BBC Sport that City are expected to tell the appeal panel that they have evidence that the money directed to sponsors came from the government of Abu Dhabi, not ADUG. The independent panel rejected the argument as 'unfounded' in its findings, stating: 'We concluded that this was an explanation fabricated by the club long after the events in an attempt to disguise and conceal the reality of the hidden funding scheme.'
City have stated that the panel's decision contains 'clear material errors, in law, principle and fact, and that it is not safe'. Mansour is a member of the ruling family in Abu Dhabi and is the brother of UAE President Sheikh Mohamed bin Zayed Al Nahyan. ADUG took over City in 2008. The rules of the Premier League allow state bodies to sponsor clubs.
On Saturday, City's chairman Khaldoon Al Mubarak spoke of 'irrefutable evidence' which he claims supports the club's claim of innocence. The club's main sponsor, Etihad Airways, stated it is considering legal action against the Premier League, claiming the publication of the panel's findings had 'detrimental implications... for the airline', although the airline was not named in the redacted published findings. The UAE's state-owned airline stated that it 'categorically rejects any finding, conclusion or implication that the airline had been involved in inappropriate commercial arrangements'.
Etihad is owned by the L'Imad sovereign wealth fund, which is chaired by the Crown Prince of Abu Dhabi, the son of the UAE's president. The Premier League declined to comment when contacted by BBC Sport.
