GMCA backed broadband buyer part-owned by Manchester City chairman’s UAE fund
Greater Manchester Combined Authority backed CityFibre as the preferred buyer of broadband provider Substantial, a decision that could benefit a company partly owned by a UAE sovereign wealth fund. The revelation has renewed scrutiny of Andy Burnham’s relationship with Manchester City’s UAE owners, although officials say he was not personally involved in the decision.
CityFibre is partly owned by Mubadala, whose chief executive is Manchester City chairman Khaldoon Al Mubarak; the fund has invested at least £800 million in the company. Rival bidder Nexfibre, jointly owned by Liberty Global and Telefónica, has submitted a £2 billion offer and disputes the competition regulator’s interim preference for CityFibre. The GMCA says its position was based on value for residents and maintaining competition, while CityFibre points to £900 million in new commitments and growing customer numbers.
In short
- Greater Manchester backed CityFibre in the Substantial takeover contest.
- Mubadala, led by Manchester City chairman Khaldoon Al Mubarak, partly owns CityFibre.
- Nexfibre disputes the regulator’s interim preference for its rival.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The GMCA can reasonably argue that backing CityFibre serves residents if its assessment found the offer better for value and competition, and the company’s reported investment commitments and customer growth support its case that it can expand the network. Officials also say Burnham was not personally involved, which weighs against treating the decision as evidence of a personal favour.
The case against
Critics can reasonably argue that the decision merits close scrutiny because CityFibre is partly owned by a UAE sovereign wealth fund led by Manchester City’s chairman, amid existing questions about Burnham’s relationship with the club’s owners. Nexfibre’s £2 billion rival offer and its challenge to the regulator’s interim preference raise questions about whether CityFibre was clearly the best option for residents and competition.
Explained simply
Greater Manchester Combined Authority (GMCA) is the regional body responsible for coordinating services and decisions across Greater Manchester. CityFibre and Substantial both operate broadband networks, while Nexfibre is another network operator; a sale would affect who owns the infrastructure and competes to provide internet services.
CityFibre is partly owned by Mubadala, an investment fund owned by the government of Abu Dhabi. Mubadala’s chief executive, Khaldoon Al Mubarak, is also chairman of Manchester City Football Club, whose owners have links to the UAE. Andy Burnham is Greater Manchester’s mayor, and scrutiny of the authority’s decision has raised questions about perceived links, even though officials say he was not involved in it.
The ownership matters because broadband networks can shape the choice and availability of services for residents and businesses. The competing bids and the regulator’s role are part of a wider question about how to maintain competition while securing investment in local infrastructure.
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Originally published by Daily Mail as “Burnham’s office backed broadband deal that would benefit UAE fund headed by chairman of scandal-hit Manchester City”.