Manchester City Face New Financial Investigation After La Liga President Demand

La Liga President Javier Tebas Confirms Request for Formal Investigation

Manchester City are facing another financial investigation after La Liga president Javier Tebas formally reported the Premier League champions to the European Commission over alleged financial breaches. This comes as City still await the outcome of the Premier League’s investigation into 115 alleged breaches of financial regulations between 2009 and 2018.

Tebas has long been a vocal critic of state-backed football ownership models, particularly targeting clubs like Manchester City and Paris Saint-Germain. He claims that City have been hiding losses by diverting them to state-owned companies outside the City Football Group (CFG) structure.

Manchester City Accused of Hiding Losses in Other State-Owned Companies

At the FT Business of Football Summit, Tebas detailed his allegations against Manchester City, stating that the club has been using external companies to absorb financial losses, thereby keeping their books clean and staying within Financial Fair Play (FFP) regulations.

“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,” Tebas said.

Tebas further emphasized the importance of transparency and governance in football, insisting that all clubs should be subject to the same regulations and scrutiny.

“We have reported Manchester City to the EU. We have the facts and figures. It’s very important that all clubs are subject to the same transparency rules and governance on both the sporting and financial side.”

Allegations Against Manchester City: How the Club Reportedly Circumvents Financial Rules

Tebas elaborated on how Manchester City allegedly manipulates its financial records by utilizing a network of companies involved in scouting, marketing, and sponsorship deals.

“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.”

The accusation suggests that Manchester City artificially reduces its operating costs by channeling expenses through affiliated companies, making their financial position appear more favorable than it actually is.

Manchester City’s Response: Club Continues to Deny Allegations

Manchester City have consistently denied all allegations of financial misconduct, maintaining that their financial records are transparent and compliant with all regulations.

Since the Premier League charged City with 115 financial breaches, the club has vigorously defended itself, arguing that there is no evidence of wrongdoing. The club has also pointed to previous cases, such as UEFA’s investigation in 2020, where their two-year Champions League ban was overturned by the Court of Arbitration for Sport (CAS).

Premier League Investigation: When Will the Verdict Be Announced?

While the European Commission investigation is just beginning, Manchester City still await the verdict of the Premier League’s investigation into financial breaches.

Richard Masters, the Premier League CEO, was present at the FT Business of Football Summit and was asked about the status of the City investigation.

“The disciplinary panel has heard the case and they must be left alone now to consider their decision and given the time and space to be able to do that,” Masters stated.

The outcome of the Premier League’s case against Manchester City is expected to have major implications for the club and English football as a whole. If found guilty, potential sanctions could include heavy fines, points deductions, or even expulsion from the league.

Why This Investigation Matters: The Bigger Picture for European Football

The Manchester City investigation is not just about one club—it represents a wider battle over financial regulations and governance in modern football. State-backed clubs, including Paris Saint-Germain and Newcastle United, have been scrutinized for their financial operations, with critics arguing that they distort the competitive balance of football.

Javier Tebas has been one of the most vocal opponents of these ownership models, calling for tighter financial regulations to prevent clubs from using state-backed wealth to dominate the sport unfairly.

“We asked for City to be checked. 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,” Tebas said.

What Happens Next? Potential Consequences for Manchester City

If the European Commission or Premier League were to rule against Manchester City, the consequences could be severe. Possible penalties include:

• Financial Penalties – City could face substantial fines if found guilty of breaching financial rules.
• Points Deduction – A Premier League points deduction could affect City’s position in the table and their eligibility for European competitions.
• Transfer Restrictions – City could face transfer bans or limitations on spending.
• Expulsion from the Premier League – In an extreme scenario, City could be relegated or expelled from the league.
• Reputational Damage – Even if City avoids serious punishment, the ongoing allegations could harm their global reputation.

Will Manchester City Overcome These Allegations?

Despite the serious accusations, Manchester City have a strong legal team and financial backing to challenge any ruling against them. Their previous success in overturning UEFA’s Champions League ban in 2020 demonstrates their ability to navigate legal challenges.

Additionally, Pep Guardiola and the club’s executives have remained publicly confident that they will clear their name.

However, if the Premier League or European Commission issues a ruling against City, it could set a precedent for future financial investigations into other clubs with state-backed ownership.

Conclusion: A Defining Moment for Football’s Financial Future

Manchester City’s ongoing financial investigation could be one of the most significant legal battles in football history. With the Premier League’s verdict pending and a new European Commission inquiry underway, the coming months will be crucial in determining the future of financial regulation in football.

If found guilty, City could face severe penalties, but if they successfully defend themselves, it could challenge the legitimacy of financial fair play rules.

With La Liga president Javier Tebas leading the charge against state-backed clubs, the outcome of this case will have widespread implications for clubs across Europe. Will Manchester City clear their name, or will they become an example of financial misconduct? The football world awaits the final verdict.