La Liga chief executive Javier Tebas says he has reported the Premier League giants to the European Commission and claims they are investigating the case.
Tebas has alleged that City have spread their losses and hidden them in a series of related marketing and scouting companies to manipulate their financial fair play figures.
Tebas who long time has had reservations about Man City financial dealings told media at the FT Business of Football Summit that the complaint was made in 2023.
He said he believed the case was currently in an “investigation phase” by the European Commission – the executive body of the European Union which develops and enforces laws for its member states.
Tebas said the complaints made is majorly on his belief of how City has built a structure that bends the rule by finding loopholes in the rule book and believes it’s been pushed by a group of companies in the United Arab Emirates outside the city Group.
La Liga argues that these deals has given the Premier League champions a competitive advantage in both English competitions and the Champions League.
City have not commented on Tebas’ allegations but club sources are aware of them, and strongly refute them.
Tebas said: “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. We have reported Manchester City to the EU. We have the facts and would drop that along with other documents to back it.
“We asked for City to be checked. It’s very important that all clubs are subject to the same transparency rules and governance on both the sporting and financial side.
“The City case is one where we believe they have put the losses on the companies that are not officially part of City Football Group.”
He added: “They have a scouting company, a marketing company. That’s where they have very high expenses. They invoice City for less money.
“City have costs that are less than if they didn’t have this circle of companies around.”
Tebas said the complaint has been made under Foreign Subsidies Regulation that came into effect on 12 July 2023 and grants the EU powers to investigate state-controlled foreign subsidies.
City declined to comment, but sources close to the club said Tebas has a long history of attacking City which dates far back as when Pep Guardiola left the club.
City sources point to the club’s accounts, which are majorly out to the public to peruse and see if there is any irregularities on it.
Te as has also accused Paris Saint Germain and Manchester City of being a state funded team and as so would have lots of financial muscles to flex which is detrimental to many other teams chances of winning trophies since the best of players would tilt towards such teams.
City are also awaiting the outcome of the hearing into their 115 charges for alleged Premier League financial rule breaches which is independent of this new allegations from Tebas. If they are found guilty, they could face sanctions that ranges from fines to point deduction.
