‘We want sanctions’: Man City reported to European Union by furious LaLiga chief

Manchester City have been reported to the European Union by LaLiga president Javier Tebas over alleged financial irregularities.

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It comes as City await a verdict in relation to 130 charges brought against them for alleged breaches of the Premier League’s financial fair play (FFP) rules.

The reigning English champions are also locked in a separate dispute with the Premier League over associated party transactions (APT).

Man City could now face another legal challenge from abroad – as Spanish football chief Tebas called for sanctions.

He said: “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. We first made the complaint in July 2023 and there are now regulations in place allowing the EU to look at companies like City Football Group.

“There are two aspects. The first is checking Manchester City are not using other companies to cheat the system. The second element is a bigger battle to stop football ending up in the hands of State-owned entities without proper policing.

“Our case against Manchester City relates to two things. We take issue with some of the prices the club have paid. And we question who the club can saddle losses on other related companies that are not directly part of City Football Group.”

Tebas added: “I can’t speak to any sanctions for Manchester City on this matter yet. All I can say is when a company in Europe, in general, is seen to have distorted the market, they often have to return funds. We want Manchester City to be sanctioned.

“The case is currently in the investigation phase. We haven’t had a reply yet. Remember, the EU have lots of cases.”

Man City refused to comment when approached by talkSPORT, but it is understood they strongly refute the allegations.

Tebas has previously described State-run football clubs such as City and Paris Saint-Germain as a ‘danger’ to football.

The Spaniard also raised concerns about Newcastle, but claimed there ‘is not enough data’ to lodge a complaint.

City were forced to overturn a two-year ban from European competitions in the Court of Arbitration for Sport (CAS) after UEFA accused them of ‘serious breaches of FFP’ in 2020.

Pep Guardiola’s men went on to win the Champions League in 2023. Explaining his complaint, Tebas said: “Manchester City were already expelled from European competition for two seasons but then they went to the Court of Arbitration for Sport. We call it a ‘court’ but it’s not really a court of justice. Manchester City were not condemned.

“UEFA was clear in the sanctions. In the case of the Premier League’s charges, I don’t know whether Manchester City will be deducted one point or 50 points or get relegated. All I know is the UEFA sanction was just, regardless of what CAS ruled.”

He continued: “Related parties need to be kept at arm’s length. It’s the same in every other sector, so why not football?

“When City Football Group bought Girona they sent five players on loan. We checked the valuations. We calculated they were 40 times higher than Manchester City claimed. We used our valuation, and that’s why there was no complaint or sanction.

“What worries me about Manchester City is something else. They have a group of companies outside of City Football Group. They saddle all their expenses to these companies.

“For example, they have scouting or marketing companies who accrue high expenses. They invoice Manchester City for low amounts. It allows Manchester City to have a structure that circumvents the rules.”

It is understood City remain confident that their accounts – which are a matter of public record – clear them of any wrongdoing.

The UEFA and Premier League investigations into City began when German outlet Der Spiegel published a report into their finances in 2019, based on the work of Portuguese computer hacker Rui Pinto.

City are accused of failing to provide accurate financial information over nine seasons between 2009 and 2018, during which they won the Premier League title three times.

They deny all allegations against them and a verdict is expected in the spring following a hearing in front of an independent commission between September and December last year.

Premier League chief executive Richard Masters spoke briefly about the case at the Business of Football Summit on Thursday, stating that ‘the disciplinary panel needs to be given time to come to their decision’.

City have already secured one legal victory over the Premier League after APT rules were deemed unlawful by a tribunal.

The rules were created to stop clubs profiting from sponsorship deals linked to their owners which are deemed not to be ‘fair market value’.

Amendments were voted through by Premier League clubs in November 2024 despite opposition from City, who have since launched a fresh legal challenge.

Amid a disappointing title defence this season, City spent £172million on four players in the January transfer window and handed Erling Haaland the most lucrative contract in Premier League history.

When asked if this was to mitigate against a possible transfer embargo, Guardiola said: “I do not agree but my words will not convince people that our attributes are just being in a wealthy position. In the last five years, we are the last team in the top six for net spend.

“Even after what we have spent in this transfer window, we are away from Chelsea, Manchester United, Arsenal, Tottenham. Even from Liverpool.

“The only reason why is because we sold a lot in the last seasons but even with that I know this club, it is always ‘just about the money’.

“In one month I think there will be a verdict and a sentence and after we will see my opinion of what happened so far. Still, at the end, every club can do whatever they want.“Because in the last ten years we are third (for net spend), but in the last five even with what we won we are behind the top six teams, so I’m sorry for the comments and that is why I don’t agree.”