Manchester City has been reported to the European Union by LaLiga president Javier Tebas over alleged financial irregularities. This action comes as the club awaits a verdict regarding 130 charges related to breaches of the Premier League’s financial fair play (FFP) rules.
The reigning English champions are also involved in a separate dispute with the Premier League concerning associated party transactions (APT). Tebas has called for sanctions against Manchester City, stating, “We have reported Manchester City to the EU. Even though they are an English team, and not part of the EU, they still have commercial activities in Europe.” He noted that the complaint was initially filed in July 2023, and regulations now allow the EU to investigate companies like City Football Group.
Tebas outlined two main concerns: ensuring Manchester City is not using other companies to circumvent regulations and addressing the broader issue of state-owned entities in football. He expressed dissatisfaction with some financial dealings of the club, particularly regarding inflated prices and the allocation of losses to related companies not directly part of City Football Group.
While Manchester City declined to comment on the allegations, it is understood they strongly refute them. Tebas has previously labeled state-run clubs like Manchester City and Paris Saint-Germain as a threat to the integrity of football.
In 2020, Manchester City successfully overturned a two-year ban from European competitions imposed by UEFA for alleged serious breaches of FFP. Tebas criticized the Court of Arbitration for Sport's ruling, stating that UEFA's sanctions were justified despite the court's decision.
He emphasized the need for transparency in football finances, stating, “Related parties need to be kept at arm’s length.” Tebas raised concerns about the club's financial practices, including inflated valuations of player loans to circumvent financial regulations.
Manchester City maintains confidence in their financial records, which they assert demonstrate compliance with regulations. Investigations by UEFA and the Premier League began following a 2019 report by a German outlet that alleged financial misconduct over nine seasons during which the club won three Premier League titles.
The Premier League's disciplinary panel is currently reviewing the case, with a verdict expected in the spring following hearings held last year. Premier League chief executive Richard Masters has stated that the panel needs time to reach a decision.
Despite ongoing scrutiny, Manchester City has continued to invest in their squad, spending £172 million on four players in the January transfer window and securing a record contract for Erling Haaland. Manager Pep Guardiola defended the club's spending, arguing that their net expenditure over recent years has been lower than that of other top clubs.
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