Sports
Manchester City Faces EU Investigation Over Financial Fair Play Allegations
LONDON, England — Manchester City, a prominent football club in the Premier League, is under scrutiny following accusations from La Liga President Javier Tebas regarding potential financial misconduct. Tebas announced on Thursday during the Financial Times‘ Business of Football summit that he has filed a complaint with the European Commission regarding the club’s financial practices, specifically relating to suspected violations of financial fair play rules.
Tebas indicated that the complaint, filed in July 2023, is currently in the investigation phase. The La Liga chief alleged that Manchester City has structured its operations in a way that conceals financial losses in subsidiary companies, which, he claims, circumvents sports governance regulations. ‘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 stated.
According to Tebas, City has engaged in practices reminiscent of the infamous Enron scandal, where financial discrepancies were hidden within different corporate entities. ‘They have a scouting company, a marketing company. That’s where they have very high expenses. They invoice City for less money,’ he explained.
The European Commission confirmed receipt of La Liga’s complaint but declined to comment on ongoing assessments. A spokesperson stated, ‘The Commission may examine information regarding any alleged foreign subsidies distorting the internal market, in any economic sector, including sports.’
Manchester City officials have publicly denied all allegations connecting them to financial wrongdoing. A club representative mentioned that they would not comment on the ongoing investigation but insisted their accounts are transparent and reflect no violations. ‘Our accounts are a matter of public record,’ the spokesperson emphasized.
Adding to the tension surrounding the club, Manager Pep Guardiola refrained from addressing Tebas’ comments during a press conference ahead of their FA Cup match against Plymouth Argyle. He repeatedly responded to questions about the allegations with a curt ‘Next.’
Guardiola did express confusion over why the club has become a frequent target for scrutiny, saying, ‘I don’t know. It happened in the past with UEFA, and in a few weeks it’ll happen in the Premier League, the sentence, right? We wait, and after we talk.’
Manchester City is already embroiled in a separate legal dispute regarding over 100 alleged breaches of Premier League financial rules, which could lead to severe penalties, including a possible points deduction. The outcome of that case is expected imminently, raising stakes for the club as they navigate these latest allegations.
As the investigations unfold, the football community watches closely to see how the situation develops and what implications it may hold for both Manchester City and the broader landscape of football governance.
