Prestwich_Blue
Well-Known Member
There's also two separate issues here. The first is, whether related or associated parties are involved or not, were the sponsorship agreements at market value? Given they've never been challenged, and that even UEFA accepted Etihad was broadly in line with the market (which CAS also agreed with) then there is no financial issue.Well, the question the Premier League can ask is essentially the same one UEFA asked in 2014: did Sheikh Mansour exercise significant influence over Aabar, Etisalat and Etihad?
The answers are probably Aabar: yes, Etisalat: maybe, Etihad: no.
So if the Premier League is relying on broadly the same evidence as UEFA, Etihad looks like a dead end, and Aabar and Etisalat are the only areas where they might realistically score some points in section 1.
Where the problem arises is in statutory reporting, and the CAS judgment made a comment about this, stating that if had improperly failed to declare related party transactions then we could be guilty of misreporting. But that has zero impact on our financial reporting, as long as a sponsorship is fair value and correctly accounted for.
I've speculated previously that one of the reasons that related parties are of interest in our case is that we would be forced to publish the value of these sponsorships, and this is exactly what some clubs want.
And para 11 of IAS 24 specifically states
"In the context of this Standard, the following are not related parties:
(a) two entities simply because they have a director or other member of key management personnel in common or because a member of key management personnel of one entity has significant influence over the other entity."
Sheikh Mansour himself is clearly a related party to Manchester City, but to prove Aabar was, the PL would have to show that he played a central role there and played a key part in arranging the sponsorship agreement. And I'm not sure how they'd do that.
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