In 2018, UK tax authorities initiated an investigation into Manchester City to assess whether the football club employed complex arrangements to reduce its tax obligations, according to a report published on October 7. The probe by HM Revenue & Customs (HMRC) followed the release of leaked emails from the club, which appeared in the German publication Der Spiegel in late 2018.

While the investigation was prompted by these disclosures, sources familiar with the matter have indicated that HMRC never formally closed the case, and no action has been taken against Manchester City to date. The authorities have not accused the club of deliberate fraud. HMRC declined to comment on the investigation, citing taxpayer confidentiality.

Manchester City, which is backed by Abu Dhabi ownership, has recently been found guilty by an independent commission of breaching Premier League financial rules over a period spanning from 2009 to 2018. The club, acquired in 2008 by Sheikh Mansour bin Zayed al-Nahyan—Vice-President and Deputy Prime Minister of the United Arab Emirates—has since emerged as a dominant force in English football, securing eight Premier League titles and a UEFA Champions League victory.

The financial scandal casts a shadow over one of Abu Dhabi’s prominent international endeavors to project influence through sports and presents a challenge for the United Kingdom, which maintains close diplomatic and economic relations with the Emirates. Last week, British Prime Minister Andy Burnham, who previously served as mayor of Manchester, commended the club's Emirati owners for their investments and expressed concern about potentially losing their involvement. However, Downing Street subsequently clarified that no individual or entity is exempt from adherence to established rules.

The commission’s findings detailed over 100 breaches of the Premier League’s financial regulations by Manchester City during nearly a decade. It reported that certain agreements orchestrated by the club artificially boosted revenue figures and reduced expenditure by more than £900 million from 2009 through 2018, a period that coincided with multiple title wins and other trophies.

Manchester City has lodged an appeal against the ruling. Although the Premier League has yet to announce any penalties, analysts have suggested the club could face significant consequences, including points deductions, financial fines, or even expulsion from the league’s top tier.