La Liga Reports Man City to European Commission Over Financial Practices

La Liga president Javier Tebas has filed a complaint with the European Commission, alleging that Manchester City has breached rules regarding state-owned companies.

The complaint, made in 2023, centers on claims that City has circumvented financial regulations through a network of companies outside the City Football Group. 

Tebas, a vocal critic of Manchester City, asserts that these external companies, located in the United Arab Emirates, are used to absorb expenses, providing the Premier League champions with an unfair competitive advantage.

He believes this structure allows City to operate outside of standard financial scrutiny.   

The European Commission has confirmed receipt of La Liga’s submission. While they refrained from commenting on any ongoing assessments, a spokesperson stated that the Commission will “examine information regarding any alleged foreign subsidies distorting the internal market.”

Tebas explained, “City have 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.”

He pointed to scouting and marketing companies as examples of entities where inflated expenses are allegedly recorded, allowing City to report lower costs.

Manchester City has not officially commented on the allegations, but club sources are aware of them and strongly deny any wrongdoing. They point to their publicly available accounts as evidence of compliance. 

This complaint is separate from the Premier League’s ongoing investigation into 115 alleged breaches of financial rules by Manchester City, which could result in significant penalties if they are found guilty. La Liga had previously filed a complaint with UEFA in 2022 regarding the “irregular financing” of City and Paris St-Germain.