LaLiga Allegations: Manchester City Face EU Probe
The allegations against Manchester City are part of a broader controversy surrounding the club's financial dealings, with LaLiga's complaint to the EU Commission alleging that the club breached EU Competition Law by receiving foreign subsidies from the UAE, allowing them to gain a competitive advantage and distort markets.
Manchester City are facing a trial against the Premier League over 115 charges, and LaLiga president Javier Tebas has reported the club to the EU for alleged breaches of rules related to state-owned companies, claiming they have hidden losses in companies outside the City Football Group structure.
The allegations, which Manchester City strongly deny, suggest that the club has a structure that circumvents the rules, including a group of companies in the UAE outside the City Football Group. Tebas believes this gives the club a competitive advantage and has filed a complaint under the Foreign Subsidies Regulation, which grants the EU powers to investigate state-controlled foreign subsidies.
The European Commission has confirmed receipt of the complaint and will examine information about alleged foreign subsidies distorting the internal market. Manchester City manager Pep Guardiola declined to comment on the allegations, saying only "next" when asked about the matter in a press conference. The club's hierarchy and finances have been under scrutiny, with sources close to the club pointing to their publicly available accounts as proof of no wrongdoing.
The outcome of the trial and the EU probe remains to be seen, but if found guilty, Manchester City could face punishment, including a points deduction or relegation. The club's confidence in their finances and hierarchy remains unwavering, despite the allegations and ongoing investigations.
