La Liga president Javier Tebas has confirmed that Spain’s top football league has formally reported Manchester City to the European Commission, accusing the English club of breaching rules related to state-owned companies.
The complaint, which was lodged in 2023, is currently being examined by the European Commission, the governing body responsible for enforcing laws across the European Union.
Tebas, a vocal critic of Manchester City and its ownership model, disclosed the details during the FT Business of Football Summit. According to him, the case revolves around alleged financial practices that, he claims, give City an unfair advantage over their rivals, both in the Premier League and in European competitions such as the Champions League.
The crux of La Liga‘s complaint is that Manchester City‘s financial structure involves a network of companies linked to the United Arab Emirates, which Tebas believes operate outside the official City Football Group umbrella. These companies, he claims, absorb expenses and losses that should rightfully appear in the club’s accounts, thereby presenting a distorted picture of City’s true financial health.
“City has a lot of companies in their group which lie outside the City Football Group structure, extra companies where they put their expenses. These other companies lose the money but not the club itself. We have reported Manchester City to the EU. We have the facts and figures.”
Tebas explained.
BBC Sport reported that the European Commission acknowledged receiving La Liga‘s submission and it would review the complaint under the Foreign Subsidies Regulation, which came into force in July 2023. This regulation grants the EU powers to investigate whether foreign state-controlled entities are distorting competition within the internal market. However, the Commission declined to comment further, citing its policy on ongoing cases.
Tebas elaborated on the alleged mechanism, claiming City uses associated companies for high-cost activities such as scouting and marketing. These companies, according to Tebas, bill Manchester City for services at below-market rates, keeping the club’s official expenses artificially low.
“They have a scouting company, a marketing company. That’s where they have very high expenses. They invoice City for less money. City has costs that are less than if they didn’t have this circle of companies around.”
Tebas said.
Manchester City has declined to comment directly on Tebas‘ latest claims. However, club sources have strongly refuted the allegations, pointing to City‘s publicly available financial statements as evidence of full transparency. City also views Tebas‘ actions as part of his long-standing hostility towards the club, given similar complaints filed by La Liga in the past against both Manchester City and Paris Saint-Germain — two clubs Tebas has repeatedly labeled as “state clubs.”
In the meantime, Manchester City continues to await the outcome of a separate investigation by the Premier League, in which the club faces 115 charges related to alleged breaches of financial rules. If found guilty, City could face severe sanctions, including hefty points deductions or even relegation from the Premier League.
