Friedrich Engels famously described the industrial slums of Manchester as “Hell upon Earth” and among the worst in Britain after visiting them in the 1840s.

Now some of those same mill buildings host Michelin-star restaurants, creative agencies and fashionable flats that sell for more than £300,000.

The transformation of Manchester’s skyline over recent decades is remarkable, all the more so that it happened in a northern city still bearing the scars of deindustrialisation and economic decline.

Manchester City’s owners, the Abu Dhabi United Group (ADUG), weren’t the only reason it happened, but they were a key catalyst.

And they are also why the Manchester City cheating scandal has led to what some are calling Andy Burnham’s first “misstep”.

The Prime Minister was Mayor of Greater Manchester when ADUG’s cash wasn’t just flouting Premier League rules, according to this week’s bombshell findings, so that Manchester City could buy right-backs for £50m, it was also paying for thousands of luxury flats, research facilities at the University and a huge expansion of the Etihad stadium.

Burnham welcomed the cash that helped to build his “Manchesterism” brand – propelling him into the country’s top political job.

Having such a willing and deep-pocketed private investor on his doorstep – at a time of squeezed local government funding – was a huge boon.

But now Burnham stands accused of political interference in an independent process.

Asked about what should happen next in the case that has rocked world football, the Prime Minister chose to praise ADUG for being a “huge partner in the building of modern Manchester”. He added he would be “really concerned to lose” them.

After attracting a wave of criticism for these comments, Burnham was this afternoon forced to issue a climbdown, with a No 10 spokesman saying: “As the Prime Minister made clear…. there can’t be any suggestion that anyone is above the rules.”

An independent Commission has ruled that Manchester City are guilty of more than 100 charges of breaking financial rules by cheating over several years. Manchester City have denied wrongdoing and plans to appeal.

Burnham’s links to City owners

ADUG has worked closely with Manchester’s political leaders on a number of projects during Burnham’s tenure as mayor between 2017 and 2026.

Of particular note is the joint property venture between Manchester City Council and ADUG, called ManchesterLife, which was first founded in 2014.

It has been the driving force behind the regeneration of Ancoats, the neighbourhood now often named as one of the “coolest places to live in the world” by magazine.

An analysis of the ManchesterLife property portfolio in 2022 estimated it was worth at least £350m and generates around £10m a year in rental income.

However, researchers at the University of Sheffield say there is little evidence as to how much of this has come back into the public coffers.

Manchester City Council has repeatedly claimed it has a “revenue-sharing” arrangement as part of the ManchesterLife deal.

Masdar, an Abu Dhabi-owned energy company, invested in the £60m graphene facility at the University of Manchester and, in 2023, a spin-out signed a deal expected to be worth $1bn (£758m) with the UAE.

The Etihad Stadium was originally built with taxpayers’ money for the Commonwealth Games in 2002, but Manchester City’s owners now lease it from the council at a rent believed to be around £4m a year.

ADUG are about to complete a £300m expansion of the stadium which will take its capacity above 61,000 seats while adding a hotel and a skywalk for visitors.

As well as transforming the area around the stadium – previously one of the city’s most deprived – the investment has helped create hundreds of jobs and improve social, educational and housing outcomes for the community.

In the stands of the Etihad Stadium in 2019, Burnham was pictured in conversation with Khaldoon al-Mubarak, an Emirate official who has chaired Manchester City for nearly two decades.

They were watching a star-studded cast of Manchester City legends take on an All Star Premier League team for the testimonial of star defender Vincent Kompany.

The former Manchester City captain had pledged to donate all the proceeds of the game to Burnham’s A Bed Every Night scheme – his pledge to eradicate homelessness in Manchester.

Burnham also attended a gala dinner for the testimonial, among Manchester City players and staff, which together raised hundreds of thousands of pounds.

Asked whether he had any concerns about Manchester City’s owners in 2023, Burnham told Pod Save the UK: “Go to East Manchester now and then look at photographs of it 40 years ago… a large amount of the investment has come from the owners of Manchester City.

“I’ve got to judge what I see in Manchester, and how I see the owners run Manchester City and what they do to improve life here. They’ve been huge partners for the city and they’ve improved a lot of lives here.”

Burnham ‘turned other way’ on human rights

Burnham has also frequently declined to comment on complaints about Abu Dhabi’s human rights record.

International watchdogs say the UAE has a record of political oppression, poor treatment of migrant workers and criminalises homosexuality.

Nick McGeehan, director of human rights group FairSquare, said Burnham was “part of the political class in Manchester that rolled out the red carpet for Abu Dhabi and turned the other way whenever serious evidence was presented of how abusive they were.

“The city council, MPs, no one covered themselves in glory,” he added. “I think it’s a failure of UK government to allow the UAE to become so embedded in our politics.”

He said Burnham’s recent comments on the football investigation “are a misstep”.

Manchester City have until Friday to submit an appeal against the Premier League’s ruling.

The extent of the wrongdoing, with Manchester City accused of using “sham” sponsorship deals to hide extra funding from ADUG over nine seasons, has led to speculation of an unprecedented punishment.

Some football club bosses are reportedly in favour of seeing Manchester City deducted enough points to ensure they are relegated this season, or even thrown out of the Premier League entirely.

Culture Secretary Lisa Nandy said Manchester City are facing “very serious” sanctions and that expulsion from the league is possible.

A senior Tory source said: “He definitely overstepped. Maybe it’s just because of Manchester and because he’s worked closely with the club and the Emirates and all the rest.

“It’s going to get more controversial, and it will get quite political, I suspect.”

Hannah Spencer, the Green MP for Gorton and Denton, told The i Paper: “Andy Burnham has serious questions to answer about why he seems so keen to back Manchester City’s billionaire owners.

“As Mayor of Greater Manchester, he waved through plans to pollute our city’s skyline with luxury high-rises, built by the Abu Dhabi Group and others, that most people here can’t afford to live in.”

Nathan Evans, leader of the Conservative party in Trafford, Greater Manchester, said Burnham’s comments show he “can’t afford to upset the Abu Dhabi group”.

When asked to comment for our story, a No 10 spokesperson said: “As the Prime Minister made clear, the initial judgement is serious and there can’t be any suggestion that anyone is above the rules.

“He also stressed that it is an ongoing independent process. It is essential that it is allowed to run its course and the outcome respected.

“If wrongdoing is established, those responsible should face the appropriate consequences.”