UK tax body opened probe into Man City in 2018

The UK tax authorities began investigating Manchester City in 2018 to ascertain if the club, known for its high-profile ties to Abu Dhabi, used complex tax arrangements to minimize payments, according to the Financial Times. This probe stemmed from the release of club emails in Der Spiegel, as sources with knowledge of the matter revealed to the FT.

The investigation, which does not suggest deliberate fraud, has not been formally concluded and the tax office has not taken any action against the club, citing confidentiality concerns. Sheikh Mansour bin Zayed al-Nahyan, the Emirati vice-president and deputy prime minister, acquired Manchester City in 2008, reshaping the club's fortunes with eight English Premier League titles and a Champions League win.

However, an independent commission found City guilty of over 100 Premier League financial rule breaches from 2009 to 2018, alleging that their strategies inflated revenues and cut costs by over £900 million during that period. Manchester City has appealed the ruling, but potential sanctions, including points deductions, fines, and even expulsion from the Premier League, loom.

British Prime Minister Andy Burnham, a former Manchester mayor, expressed concern over losing the club's significant investments, signaling the delicate balance the UK faces in maintaining its relationship with Abu Dhabi.