Manchester Council's 'Sweetheart Deal' with Sheikh Mansour's Firm Revealed

Manchester City Council granted Sheikh Mansour’s Abu Dhabi United Group (ADUG) preferential access to development land through a controversial 2015 contract, according to revelations from a Freedom of Information request. The 10-year agreement gave ADUG, which owns Manchester City Football Club and has a stake in the Co-op Live arena, the ‘right of first refusal’ on land the council planned to sell in the Ancoats and New Islington areas.

This arrangement has led to accusations from other developers that Abu Dhabi received preferential treatment. One developer told The Sunday Times, "This is a sweetheart deal between Abu Dhabi and Manchester City Council," adding that the arrangement "did hold some of us back."

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. The contract was signed by Sir Howard Bernstein, the then chief executive of Manchester City Council, who later served as a strategic development adviser for City Football Group, a subsidiary of ADUG, before his death in 2024.

The joint venture received £35.1 million in loans from the Greater Manchester Housing Investment Loans Fund (HILF), a £1 billion fund intended to stimulate development. HILF has faced criticism for supporting schemes that often lacked affordable housing and primarily benefited city center skyscrapers over outlying areas.

ADUG's involvement in Manchester's development has been lauded by local officials, including Andy Burnham, the Greater Manchester Mayor, who described ADUG as a "huge partner." However, this partnership has drawn scrutiny amid human rights concerns related to the United Arab Emirates, including allegations of arbitrary detention of dissidents and funding for militants. In 2023, the human rights group Fair Square criticized politicians for being vocal about the UAE's contributions to Manchester while remaining silent on its human rights record.

Further complicating the narrative, Manchester City Football Club was recently found to have breached Premier League financial regulations by an independent commission. The commission found that the club had inflated revenue and reduced costs by over £900 million, with ADUG money used to significantly increase the value of sponsorship deals. The club has lodged an appeal against this verdict.

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

The revelations come as reports suggest the UAE is threatening to withdraw billions of pounds in investment from a high-technology hub planned between Oxford and Cambridge. Meanwhile, the Liberal Democrats have called for Burnham to disclose details of his meetings with ADUG and any hospitality received from Manchester City.

Manchester Life's developments in Ancoats and Islington include housing and commercial spaces, with a city council source highlighting that the joint venture delivered £1.25 billion in regeneration, created 1,500 new homes including affordable properties, preserved historic mills, and developed 30,000 square feet of commercial space.