Kieran Maguire: This may be the real reason Man City chief’s exit has been confirmed
Mohamed Mubarak may have resigned from City Football Group to future-proof Man City against possible new conflict of interest laws.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about the scope of the Premier League’s new related party rules.
The top-flight announced in December that any new commercial deal will be assessed for fair market value.
The new law, which was objected to by Man City and Newcastle United, is intended to prevent clubs from artificially boosting their FFP standing.
Mubarak has been on the City Football Group board since 2013 but resigned on 1 January, as per a Companies House update on Monday (7 February).
The Emirati politician is also the chairman of Etihad, City’s lucrative stadium and front-of-shirt sponsor.
Maguire suggests that Mubarak’s exit could be a preventative measure to protect the club against future law changes surrounding related parties.
“It looks as though all deals are going to be scrutinised at market value and not just with related parties,” he told Football Insider‘s Adam Williams.
“The Premier League has broadened its sphere of review, although that could be reversed in time. That is the crucial point here.
“One thing that City are very good at is forward planning and having a strategy in place to deal with things before they happen.
“I expect this is all part of that and City want to future proof themselves in terms of their ability to develop relationships with commercial partners.“
City have signed a number of sponsor deals with UAE-based firms in 2022.
They earned £217.6million in commercial income in 2020-21.
In other news, Man City in pole position to sign Erling Haaland for £68m after major development.