La Liga President Accuses Manchester City of Violating State-Owned Company Rules
In a bold move that has sent shockwaves through the football world, La Liga President Javier Tebas has officially reported Manchester City to the European Commission for alleged breaches of rules concerning state-owned companies. Tebas, a vocal critic of City, made this revelation at the FT Business of Football Summit in 2023, shedding light on a complaint that has put the spotlight on the Premier League champions.
Tebas’ claim is centered around his belief that Manchester City has a complex structure that allows them to circumvent regulations, giving them an unfair advantage in both domestic and European competitions. The crux of the matter lies in a network of companies in the United Arab Emirates that operate outside the City Football Group, the official umbrella organization of the club.
According to Tebas, these external entities absorb the club’s expenses, creating a financial loophole that distorts the true financial picture of Manchester City. “City have a lot of companies in their group which lie outside the City Football Group structure, extra companies where they put their expenses,” Tebas stated. “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.”
The La Liga president emphasized the importance of transparency and equal governance for all clubs, stressing that Manchester City’s alleged practices undermine the integrity of the sport. “They have a scouting company, a marketing company. That’s where they have very high expenses. They invoice City for less money,” Tebas explained. “City have costs that are less than if they didn’t have this circle of companies around.”
This complaint has been lodged under the Foreign Subsidies Regulation, a new mandate that grants the European Commission the authority to investigate foreign subsidies controlled by states. While Manchester City has refrained from commenting on Tebas’ allegations directly, sources within the club have vehemently denied any wrongdoing, pointing to their transparent financial records.
The timing of this report is particularly significant, as Manchester City is currently embroiled in a separate legal battle over 115 charges of breaching Premier League financial regulations. The outcome of this hearing could have far-reaching consequences for the club, including possible points deductions or even relegation—a fate that no football fan could have predicted for the once-dominant team.
This clash between La Liga and Manchester City is not the first instance of Tebas taking aim at high-profile clubs. In 2022, the Spanish league filed a complaint with UEFA regarding what they deemed as “irregular financing” by Manchester City and Paris Saint-Germain, both of which Tebas has previously labeled as “state clubs.” The repercussions of these accusations could reshape the landscape of European football, sparking debates about fair play and financial transparency.
As the football world eagerly awaits the next chapter in this unfolding saga, one thing remains clear: the battle for integrity and accountability in the sport is far from over. The outcome of this investigation could have far-reaching implications for both Manchester City and the broader footballing community, underscoring the need for stringent regulations and ethical practices to preserve the essence of the beautiful game.
Stay tuned as this story continues to develop, shaping the future of football and testing the boundaries of fair play in the modern era.
