Sir Richard Leese, who served as leader of Manchester City Council for 25 years, has publicly defended the authority’s business relationships with the owners of Manchester City. The comments come amid renewed scrutiny over land deals following the club’s recent guilty verdicts for breaching Premier League financial regulations.
Leese, who also holds the role of honorary president at the football club, described a decade-old agreement with Abu Dhabi United Group (ADUG) as beneficial for the city. The partnership between the local authority and the company owned by Sheik Mansour bin Zayed Al Nahyan has faced increased examination after Manchester City was found guilty of violating financial rules through “sham” commercial contracts. The club denies any wrongdoing and is currently appealing the charges.
In 2014, the council formed a joint venture named Manchester Life alongside ADUG. The project aimed to invest over £1 billion across ten years to build thousands of homes in the Ancoats and New Islington districts, located near the club’s Etihad stadium. However, a 2022 report from the University of Sheffield, titled “Manchester Offshored,” questioned the public value of these schemes and highlighted a lack of financial transparency.
The report noted an absence of affordable housing in the developments and pointed out that the joint venture companies were ultimately controlled by ADUG through offshore entities. A 2015 agreement effectively granted ADUG first refusal on land in Ancoats and New Islington. The academic report argued that the land was leased to ADUG at rates below market value.
Addressing these criticisms, Leese stated that the 2015 deal was brokered between the UK and UAE governments. He argued that at the time, development in Manchester had stalled due to the aftermath of the 2008 financial crash and the subsequent recession.
“The point is, the investment from Abu Dhabi is what created the value,” Leese said. “That deal allowed development to be kick-started – particularly in the Ancoats area. All of this was documented and went through reports that went through the council’s due processes. I think it has been demonstrated that the deal was a good deal and a good deal for Manchester.”
Prime Minister Andy Burnham, formerly the metropolitan mayor of Greater Manchester, echoed concerns about potential negative repercussions. He expressed worry that the club’s owners might withdraw from the sport if they felt unfairly treated, noting their role as a “huge partner” in building modern Manchester.
Reports suggest the UAE may pause UK-wide investment schemes worth billions as a result of the Premier League ruling. Leese told BBC Radio 4 he hoped Manchester would not suffer from a loss of Emirati investment, adding that Abu Dhabi has consistently delivered on its promises and possesses “real credibility” in the city.
Manchester City Council also issued a statement defending the partnership, describing claims that land was sold too cheaply as misleading. The authority argued there was zero market interest in the land at the time of the sale and that its current value reflects the investment made by Manchester Life. They described the joint venture as a successful platform that unlocked further private sector investment across Manchester.
Twenty-five years of leadership and he still trusts offshore entities blindly. Transparency must be improved.
Zero market interest? Really? That sounds convenient for securing a long-term deal at below-market rates.
It is fascinating how quickly foreign investment can vanish when governments get involved in football disputes.
Leese makes a fair point about kick-starting Ancoats, but where is the affordable housing promised to locals?
Sham contracts are serious allegations. I hope the appeal succeeds, or this sets a dangerous precedent for everyone.