In March, Andy Burnham's office backed a proposed broadband deal that would have benefited a United Arab Emirates (UAE) fund. This fund is headed by Khaldoon Al Mubarak, who also serves as the chairman of the scandal-hit Manchester City football club. The Greater Manchester Combined Authority (GMCA), with Burnham as Mayor at the time, supported a merger between a British business, Substantial, and a company partly owned by Emirati interests.
Sources close to Burnham insist he was not personally involved in the decision. The proposed deal involved CityFibre, which has significant investment from the UAE's sovereign wealth fund Mubadala, a major shareholder that has invested at least £800 million into the company. Mubadala is one of CityFibre's three largest shareholders.
This development occurs as Burnham faces scrutiny regarding his relationship with Manchester City's UAE owners. He has previously stated he would be "really concerned to lose" the owners if the club faced repercussions for systematically breaking Premier League finance rules over a decade. Burnham also described the Emiratis as "a huge partner in the building of modern Manchester."
Separately, the Prime Minister faced accusations of misleading the public regarding undisclosed dinners and free tickets associated with his dealings with Manchester City during his tenure as mayor.
Louie French MP, shadow sports minister, expressed "fresh concerns about Andy Burnham’s time as Mayor of Greater Manchester and his cosy relationship with the owners of Manchester City" in light of these revelations.
The competition for Substantial involves two bidders. Nexfibre, a joint venture owned by Liberty Global and Telefónica (which also owns Virgin Media O2), has submitted a £2 billion bid. Nexfibre argues it is in a stronger financial position than CityFibre, which has been described as loss-making.
The Competition and Markets Authority (CMA) has been reviewing the situation due to concerns about market concentration in the broadband sector. According to reports, GMCA officials informed Substantial executives in March that they would recommend CityFibre as the preferred bidder to the CMA. In an interim report last month, the CMA indicated a preference for CityFibre, citing potential reductions in competition if Nexfibre were to acquire Substantial.
Nexfibre has contested the CMA's findings, calling the report "fundamentally flawed" and raising questions about CityFibre's financial viability. The GMCA stated that its decision to support CityFibre was based on securing "the best possible value for our residents" and was not linked to ownership. The authority added that it supports operators who increase competition, improve resilience, and maintain low prices, believing that having at least three infrastructure providers in residential areas is beneficial. CityFibre has maintained that its business is fundamentally strong, citing further investment and growing customer numbers.