Abu Dhabi United Group (ADUG), the company owned by Sheikh Mansour which owns Manchester City football club and holds a stake in the nearby Co-op Live arena, has come under scrutiny over a decade-long agreement with Manchester city council that granted it preferential access to council-owned development land. The arrangement, a ten-year contract signed in 2015, gave ADUG a "right of first refusal" on land in the Ancoats and New Islington areas slated for sale by the council.
Details of the contract were disclosed following a Freedom of Information request and have sparked criticism from other local developers who allege the deal amounted to a “sweetheart” arrangement. One developer described it as giving ADUG “the red carpet treatment” not afforded to British-based competitors and said it had hindered their own projects. Under the deal, new developments were managed by Manchester Life, a joint venture between ADUG and the city council.
The contract was signed by then council chief executive Sir Howard Bernstein, who later served as an adviser to City Football Group, a subsidiary of ADUG, until his death in 2024. A review conducted by Manchester city council in July noted “weaknesses in documentation, monitoring and assurance” in its private developer deals, highlighting issues in the council’s oversight.
Andy Burnham, mayor of the Greater Manchester Combined Authority since 2017, has publicly supported ADUG’s role in the city’s development, referring to the company as a “huge partner” and expressing concerns about the prospect of losing such investment. While some criticize the close relationship between the council and the Abu Dhabi-based company, others point to the regeneration efforts attributed to the partnership, including a £1.25 billion investment, the construction of approximately 1,500 homes, and the preservation of historic mills in the area.
City council officials have defended the arrangement, stating there is no financial benefit to the council from the partnership and emphasizing that the success of Manchester Life should be judged by the developments delivered and the opportunities unlocked. Officials rejected accusations of impropriety linked to the disposal of public land.
Separately, Manchester City football club is also under investigation for breaching financial regulations. An independent commission found the club guilty of serious financial violations involving inflated revenue and cost reductions, largely related to sponsorship agreements backed by ADUG funds. The club has lodged an appeal against these findings.
The controversy over the land deal and financial breaches has drawn attention from political leaders, including the Prime Minister’s office, which has affirmed that “no one is above the rules” regarding regulatory compliance and governance in public-private partnerships.