Manchester City Embroiled in EU Commission Probe: La Liga Files Complaint Over Alleged Breaches of EU Competition Law

Manchester City, the reigning Premier League champions, have been reported to the European Commission by La Liga president Javier Tebas for alleged breaches of EU Competition Law. The complaint, filed in 2023, centers on the club's alleged receipt of foreign subsidies from the United Arab Emirates, which La Liga claims gives Manchester City an unfair competitive advantage in both English and European competitions.

The European Commission has confirmed receipt of the complaint and has launched an investigation into the matter. The probe is linked to the Foreign Subsidies Regulation, which grants the EU powers to investigate state-controlled foreign subsidies. La Liga argues that Manchester City's structure, which includes a group of companies in the UAE outside the City Football Group, allows the club to circumvent rules and gain an unfair advantage.

The key allegations made by La Liga include: * Manchester City receives foreign subsidies from the UAE, allowing the club to enhance its competitive position and cause significant distortions across various national and EU markets. * The club's structure, which includes a scouting company and a marketing company, allows it to invoice for less money and reduce costs. * The subsidies enable Manchester City to sign top-tier players and coaches far beyond what would be feasible under normal market conditions and to secure sponsorship revenues at levels that do not align with fair market value.

Manchester City has strongly refuted the allegations, pointing to their accounts as proof of no wrongdoing. The club's manager, Pep Guardiola, has declined to comment on the matter, stating "Next" when asked about the subject. The club is awaiting the outcome of the hearing into their 115 charges for alleged Premier League financial rule breaches, which could result in a massive points deduction or relegation if found guilty.

The complaint filed by La Liga is separate and unrelated to the 115 charges Manchester City are facing over alleged breaches of the Premier League's financial regulations. The EU Commission's investigation into the matter is ongoing, with meetings having been held and further progress awaited. The outcome of the investigation could have significant implications for Manchester City and the wider football community, with potential consequences for the club's competitive position and financial dealings.