Manchester City: La Liga boss Javier Tebas reports club to European Commission

La Liga President Javier Tebas has stated that he has reported Manchester City Football Club to the European Commission, accusing them of violating regulations related to state-owned enterprises. Tebas has long been a critic of Manchester City, and he revealed to the media at the Financial Times Football Business Summit that the report was filed in 2023.

Tebas believes that the European Commission – as the executive body of the EU responsible for formulating and enforcing the laws of member states – is currently in the "investigation phase" of the case. He stated that the core of the report lies in his belief that "Man City has a structure to circumvent the rules," including a series of companies located in the United Arab Emirates that are outside of the City Football Group.

La Liga believes that this structure gives the Premier League champion a competitive advantage in both domestic British competitions and the European Champions League. Manchester City has not commented on Tebas's allegations, but club sources have indicated that they are aware of the allegations and strongly deny them.

Tebas claimed: "There are many companies under the Man City umbrella that are not part of the City Football Group structure, and these additional companies bear their expenses. These companies are losing money, but the club itself is not. We have reported Man City to the EU, and we have the facts and data. We are asking for a review of Man City. It is very important that all clubs comply with the same sports and financial transparency rules and management regulations. We believe that Man City's case is about transferring losses to companies that are not officially part of the City Football Group."

He further added: "They have a scouting company and a marketing company, and these companies have very high expenses, but they invoice Manchester City for a lower amount. Therefore, Manchester City's costs are lower than if they did not have these affiliated companies." Tebas stated that the report was filed under the Foreign Subsidies Regulation, which came into effect on July 12, 2023, giving the EU the power to investigate foreign subsidies controlled by states.

Manchester City declined to comment, but sources close to the club said that Tebas has been attacking Manchester City for a long time. Manchester City sources pointed out that the club's accounts are public records, which can prove that it has no improper conduct. Manchester City is currently awaiting the outcome of a hearing on 115 charges of allegedly violating Premier League financial rules. If convicted, they could face a heavy points deduction or relegation.

In 2022, La Liga filed a complaint with UEFA about what it considered to be "improper financing" by Manchester City and Paris Saint-Germain, and Tebas had previously described the two clubs as "state clubs." BBC Sport has contacted the European Commission for comment.