Sir Richard Leese, former leader of Manchester City Council, has defended the authority's relationship with the owners of Manchester City following renewed scrutiny of land deals between the council and Abu Dhabi United Group (ADUG).

Sir Richard led the council for 25 years until stepping down in 2021 and is also honorary president of Manchester City FC. He said a decade-old partnership between the council and ADUG, owned by Sheik Mansour bin zayed Al Nahyan, was "good for the city".

The Partnership and Development Plans

The council entered into a partnership with ADUG in 2014 through a joint venture called Manchester Life. The partnership planned to invest more than £1bn over the following decade to develop thousands of homes in the Ancoats and New Islington areas, close to the club's Etihad stadium.

A 2015 deal gave ADUG first pick of land in these areas. A University of Sheffield report published in 2022, titled Manchester Offshored, questioned the public value of the schemes and raised concerns about a lack of transparency in their finances. The report highlighted the absence of affordable housing in the projects and noted that the joint venture companies were ultimately owned by ADUG through firms registered offshore. It also argued that land was leased to ADUG at "below comparable rates".

Sir Richard's Defence of the Deal

Sir Richard said the 2015 deal was "brokered by the UK government with the UAE government". He argued that the investment came at a time when development in Manchester had stalled following the 2008 financial crash and recession.

"There was criticism at the time though - and there still is now - that the land was given away too cheaply by the city council," he said. "The point is, the investment from Abu Dhabi is what created the value. That deal allowed development to be kick-started - particularly in the Ancoats area."

Sir Richard stressed that the arrangement 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," he said.

Manchester City's Investment and Recent Charges

Abu Dhabi's investment in Manchester City began in 2008, when City Football Group – majority-owned by ADUG – bought the club for £200m. With significant investment from its new owners, the club won its first trophy in 36 years with an FA Cup win in 2011 and a Premier League title the following year. The club went on to win the league seven more times between 2013 and 2024.

The Premier League began investigating the club's financial dealings in 2018. Last week, Manchester City was found guilty of 115 charges, including breaches around a so-called disguised funding scheme. The club has denied any wrongdoing and is appealing against the charges.

Wider Concerns About Investment

Sir Richard expressed concern that Abu Dhabi may reduce investment in Manchester as a result of the Premier League ruling. "I think certainly Abu Dhabi will be thinking that they have been very badly treated given the contribution that they have made - not just to Manchester but to English football as well," he said.

Prime Minister Andy Burnham, who was metropolitan mayor of Greater Manchester from 2017 to 2026, said last week that Manchester City's owners had been a "huge partner" in Manchester. He added he would be "really concerned" if the owners were to pull out of the club.

It has since been reported that the United Arab Emirates may halt UK-wide investment schemes worth billions of pounds as a result of the Premier League ruling.

Council's Response

Manchester City Council defended the benefits of the partnership with Manchester Life as a "platform for future development". The authority said: "The claim that working in partnership with Manchester City's owners has not been a good deal for the council or the city has been debunked repeatedly."

The council argued that claims about land being sold too cheaply ignore the fact that there was zero market interest at the time of the sale, and that the land is now worth more because of Manchester Life's investment. The council stated it is receiving significant financial returns through profit-sharing arrangements.