Manchester City intends to argue that sponsorship deals were funded by the Abu Dhabi government, not directly by its owners, as a central part of its upcoming appeal. The club faces 115 charges for alleged breaches of Premier League financial regulations spanning from the 2009-10 to the 2017-18 seasons.

An independent commission recently found the club guilty of 114 of these charges. These accusations include artificially inflating revenue through sham sponsorship agreements, allegedly orchestrated by its owners to circumvent financial rules and appear compliant with Premier League and UEFA regulations. The Abu Dhabi United Group (ADUG), a private investment company owned by UAE Vice-President Sheikh Mansour, was reportedly involved in topping up commercial deal values, totaling an estimated £830.69 million.

However, sources indicate that Manchester City will present evidence to an appeal board suggesting the funds directed to sponsors originated from the Abu Dhabi government. This assertion directly challenges the independent commission's findings, which dismissed a similar argument as a fabricated explanation created after the fact to conceal the true nature of the funding.

The club has consistently denied any wrongdoing and has signaled its intention to file an appeal by Friday. Manchester City has stated that the commission's decision contains "clear material errors, of law, principle and fact, and is unsafe."

Sheikh Mansour, a member of Abu Dhabi's ruling family and brother to the UAE President, acquired Manchester City in 2008. Premier League rules do permit state-owned entities to sponsor clubs, a detail that may be relevant to the club's defense.

Manchester City chairman Khaldoon Al Mubarak has previously spoken of "irrefutable evidence" supporting the club's claims of innocence. In a separate development, the club's principal sponsor, Etihad Airways, has stated it is considering legal action against the Premier League. The state-owned airline, owned by the sovereign wealth fund L'Imad, has categorically rejected any implication of involvement in improper commercial arrangements, despite not being explicitly named in the published findings.

The Premier League has declined to comment on the matter. The outcome of Manchester City's appeal is anticipated to have significant implications for the club and the broader landscape of financial regulations in football.

Questions remain regarding potential penalties, which could range from financial sanctions to expulsion from the league, as well as the timeline for the appeal process and any potential criminal investigations.