Uefa boss to scrutinise Manchester City's Etihad deal

They were always going to look at it, but can UEFA stop the investment in to a deprived inner City area, creating jobs, improving facilities and the general infrastructure? At the end of the day they are a football organisation and i'd like to think that if they did try and stop this investment, the government would have something to say about it. We have covered all the bases and they are just showing the likes of Bayern and the rest of the whingers, that they are doing their job.
 
After this investigation finds f*ck all wrong that tosser Platini will probably try to implement a new FFP rule that stipulates you can only spend the money generated from the sale of United/Barca/Madrid shirts or from the half time sale of traditional French snacks all washed down with a crisp/ light Chardonnay. The man's a tit!
 
Face saving exercise so that Twattini can go around telling everyone that FFP is being complied with rather than flaunted. He'll big it up as something it isn't. It's plain for all to see that he's impotent. What is more, we could tie him up in court for years and bankrupt Uefa in the process.... and he knows it.

Also, this is a rehash story isn't it?<br /><br />-- Tue Aug 16, 2011 1:16 pm --<br /><br />
mancunial said:
this all about pacifying the mard arse clubs especially arsenal and liverpool who know now that their automatic gravy train is about to expire, uefa have to be seen to be trying to get them back into cartel through the back door?
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Those two clubs are much weakend. Especially the Dippers. They will have very little influence on things unless they arrest the decline in status. The Arse will pull through eventually but I have my doubts about Dipperpool.
 
What else could UEFA say? They must look at all significant sponsorship deals to ensure they comply with their regulations. You can't have regulations without regulation.

But anyone who has seen the plans for the Etihad campus, or even a taster of them knows that there are no deals with which to compare this to. I forget how many acres of land Cook said City now owned around the ground, but what City plan to do is invest in the infrastructure of the City and in the long term health of the game.
 
Ultimately if City legitimately demonstrate an income of £400m then use that to further develop the club via playing staff and facilities then large portions of that cash will disperse throughout the football family which benefits UEFA. After some of the debts clubs ran up and the number faced with administration UEFA had to be seen to be taking some action but don't be fooled by there dependency on the Big clubs and those that are cash rich, they will go through the motions but will not look to alienate any of the top draws across Europe. IMO
 
Marvin said:
What else could UEFA say? They must look at all significant sponsorship deals to ensure they comply with their regulations. You can't have regulations without regulation.

But anyone who has seen the plans for the Etihad campus, or even a taster of them knows that there are no deals with which to compare this to. I forget how many acres of land Cook said City now owned around the ground, but what City plan to do is invest in the infrastructure of the City and in the long term health of the game.
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I think the first phase, the training area was either 60 or 80 acres. That means we have either 130 or 150 acres to use to put in revenue generating businesses. Oh, and maybe some car parks but I wouldn't be surprised if they put in some sort of park and ride with the new line going in.
 
Damocles said:
This is all bullshit.

Firstly, he has to prove beyond all reasonable doubt that Etihad is a "friendly company" to Man City and "both having owners from Abu Dhabi" won't cut it. Good luck with that.

After this, he would have to prove that the friendly company purposely offered above market value. The stadium is worth £10m whilst the New York Mets (with a much lower brand awareness) is worth more than that, so, good luck with that.
Then, he has to show that the shirt sponsorship deal doesn't represent fair market value. Our sponsorship deal is worth less than many clubs worldwide. So, good luck with that.
Then, he has to prove that the Etihad Campus' naming rights aren't worth £10m without any comparable project to point at for market value. Good luck with that.

Essentially, Cook has outmanoeuvred them all and they can't touch us. Platini's just been owned.
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With all due respect, i don't think a lot of the above is relevant in this situation. Initially, all they will do is to try and find links between the two parties that would suggest a favourable deal has been done. From there, they would have to find significant evidence to be able to pursue any further enquiry at this stage, which they probably already know they won't be able to do. UEFA has no authority to bring people in for questioning as far as i know.

What UEFA are probably more interested in is seeing how the deal unfolds over it's contractual period. Will the exact amount of sponsorship money from Etihad arrive into City's accounts and will there be any evidence to suggest the money has not come directly from revenues of Etihad Airways. This is where UEFA 'could' find evidence to suggest our owners are the ones funding this sponsorship deal and Etihad are acting as a front man. The truth being that Etihad as a company can sponsor anything they like for any amount they like.

However, although it's possible the deal is being set up and backed by the owner of the club, it's unlikely. The Middle East is running out of oil and they are quickly trying to diversify in order to create revenue streams for their countries once the oil has dried up. If you look at the amount of European Brands the middle east guys are buying into (Ferrari, Harrods etc), then it's quite conceivable and perhaps logical that a middle eastern airline would want to sponsor a team in the most publicised and famous sporting league in the world. They are spending serious money on infrastructure to massively increase tourism to the middle east.

So, to sum up, the sponsorship deal makes sense and ties in with strategy the middle east has come up with to support their countries in the long term.

I'd also like to point out at this stage that Cook has outmanoeuvred no one, has nothing to do with this deal apart from the community investment aspect, and probably couldn't financially or strategically outmanoeuvre Coleen Rooney.
 
BBC say UEFA Coming To Get Us!

jeanlucdehaene.jpg


Uefa boss to scrutinise Manchester City's Etihad deal

Tuesday, 16 August 2011 11:35 UK
By Matt Slater

The Etihad deal is "unique and long-term investment", say City
Manchester City's sponsorship deal with Etihad Airways will be analysed by Uefa's financial fair play (FFP) boss.

In a 10-year deal reportedly worth £400m, Etihad now sponsors both the club's shirt and the stadium.

But with City and Etihad sharing Abu Dhabi links, critics have claimed this is an attempt to circumvent European football's strict new financial rules.

City declined to reply, although the club have previously said speculation over the figures was "not accurate".

It is not enough to say 'we've got a sponsorship contract and that's OK' if the contract is out of line
Jean-Luc Dehaene
Uefa Club Financial Control Panel
"I have some questions, yes," said Jean-Luc Dehaene, the chairman of Uefa's Club Financial Control Panel.

"But it would be dangerous for our authority if we take judgements without facts."

The 71-year-old former Prime Minister of Belgium confirmed his panel would "benchmark" all deals to make sure they were "fair value".

"If we see clubs that are looking for loopholes we will act," he said.

"It is not enough to say 'we've got a sponsorship contract and that's OK' if the contract is out of line."

As well as the shirt and stadium, Etihad also sponsors The Etihad Campus which is being developed around the ground. This will create an expanded academy, sports science centre and training ground, as well as office and retail space and a 7,000-seat stadium for youth games.

All of this investment is exempt from the FFP rules as it is not deemed football-related. Any income accrued, however, does count.

FIFA FAIR PLAY AT A GLANCE

Clubs hoping to take part in the Champions or Europa Leagues must balance their football-related expenditure over a three-year period
This is the first season that counts towards the 2013/14 assessment but clubs will be allowed to make a loss of 45m euros (£39.4m) over the three years, falling to 30m euros from 2015/16.
It is not until 2018 that clubs have to bring their annual losses below £8.8m.
The ultimate sanction for any club that fails to comply with the FFP criteria is a ban from European competition.
In an exclusive interview with BBC Sport on Monday, City's chief executive Gary Cook said the deal was "unique".

"The Ethihad Campus, which constitutes some 210 acres is unique in its breadth, depth and length of term," he said.

"It involves the tradition, which is shirt sponsorship, the naming rights of the stadium, but what we haven't seen in football is a campus, creating a place to be, to work.

"We've got a great relationship with Ethihad. It's a long-term programme and they are equally very excited by it."

Cook added that City's recent spending was "not sustainable" but was needed to quickly attain Champions League football.

Manchester City have been the focus of intense scrutiny ever since an Abu Dhabi-based consortium led by Sheikh Mansour bin Zayed Al Nahyan bought the club in 2008.

The club made a loss of £93m in 2008-09, £121m in 2009-10 and last year's figures, due in September, are expected to be even worse, despite an increase in turnover partly due to a number of lucrative sponsorship deals with other Abu Dhabi-based companies.

Etihad Airways, for example, is owned by the Abu Dhabi government. The oil-rich state's ruler, Sheikh Khalifa bin Zayed Al Nahyan, is Sheikh Mansour's half-brother.
 
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