Manchester Council Accused of 'Sweetheart Deal' with Sheikh Mansour's Firm

Manchester City Council granted Sheikh Mansour's Abu Dhabi United Group (ADUG) preferential access to development land through a 2015 contract, a deal that has drawn criticism from other developers who claim it amounted to a 'sweetheart deal.' The 10-year agreement provided ADUG, the owner of Manchester City Football Club and a stakeholder in the Co-op Live arena, with the 'right of first refusal' on land the council planned to sell in the Ancoats and New Islington areas.

The existence of this contract was revealed through a Freedom of Information request, according to reports. The area is also slated for the development of the future North base for Greater Manchester Mayor Andy Burnham.

The contract was signed by Sir Howard Bernstein, then Manchester City Council's chief executive, who later served as a strategic development advisor for City Football Group, a subsidiary of ADUG, before his death in 2024. Other developers have accused the council of providing 'the red carpet treatment' to ADUG, which they argue disadvantaged British-based developers.

Under the 2015 deal, new schemes in the designated areas were to be developed exclusively by Manchester Life, a joint venture between Manchester City Council and ADUG. Bev Craig, until recently the Labour leader of the city council, served as a director of Manchester Life until last month.

This arrangement emerged as Manchester City was found guilty by an independent commission of breaching Premier League financial regulations, an accusation the club has appealed. The commission's findings suggested that ADUG money had been used to inflate sponsorship deals. Despite these financial regulation issues, Burnham had previously praised ADUG as a 'huge partner' in Manchester's development.

The 2015 contract was intended to 'promote residential development.' Manchester Life received a £35.1 million loan from Greater Manchester's £1 billion Housing Investment Loans Fund, a taxpayer-funded initiative aimed at stimulating development. This fund has faced criticism for supporting schemes that often lacked affordable housing and primarily benefited city center projects over those in outlying towns.

The partnership with ADUG has also been a point of contention for human rights groups concerned about the United Arab Emirates' record on issues such as arbitrary detention and its alleged funding of militants. Fair Square, a human rights group, noted in 2023 that politicians in Manchester were vocal about the UAE's contributions to the city but remained silent on its human rights record.

In July, Manchester City Council acknowledged 'weaknesses in documentation, monitoring and assurance' in its arrangements with private developers in a review. A council spokesperson previously stated that they did not recognize criticisms regarding the disposal of public land and that the partnership provided no financial benefit to the council.

Meanwhile, the Liberal Democrats have called for Burnham to publish details of his meetings and any hospitality received from ADUG and Manchester City. The Daily Telegraph reported that the UAE is considering withdrawing billions of pounds in investment from a high-technology hub planned between Oxford and Cambridge.