Tebas Takes Action Against Manchester City
LaLiga’s president, Javier Tebas, is making waves by comparing Manchester City to the Enron scandal in the US. He claims that City is using a network of companies to hide losses and boost their financial image. Tebas Takes Action Against Manchester City.
Tebas announced that LaLiga filed a formal complaint against Manchester City with the European Commission last summer. He says the Commission is looking into it. While City hasn’t officially replied, sources say they didn’t do anything wrong.
Allegations of Financial Tricks
Tebas believes Manchester City used companies in the UAE to move their financial losses away from the club. He says these companies took on big expenses. That allows City to show healthier finances. He thinks this method is a lot like what Enron did when it manipulated its financial reports.
At the Financial Times Business of Football Summit, Tebas explained his accusations:
“City has many companies that are outside the City Football Group. They put their expenses there. Those companies lose money, but the club looks good. We’ve reported this to the European Union with the facts.”
He stressed that all teams should follow the same financial rules to keep things fair.
Comparing to Enron
Tebas directly compared City’s alleged financial actions to the Enron case in the US. In that case, Enron moved its losses to different companies to hide the truth. He said:
“Remember the Enron case? They took their losses and moved them to other companies. It’s similar.”
He argues that Manchester City uses outside companies for scouting and marketing. These companies report high expenses but charge City less, making City’s costs look lower than they really are.
LaLiga’s Formal Complaint and Investigation
LaLiga filed its complaint based on European rules about foreign support. They accuse Manchester City of getting financial help from the UAE, which they say is an unfair advantage. Tebas claims this support has allowed City to:
- Sign top players and coaches more easily.
- Get sponsorship deals worth much more.
- Compete unfairly against other clubs in Europe.
LaLiga believes City’s financial tricks have messed up the market in the EU. They argue it undermines fair play, letting City perform at a level that should be impossible under normal rules.
Manchester City’s Response
Though Manchester City hasn’t officially commented on Tebas’ claims, insiders say the accusations are baseless. They highlight that Tebas has been critical of City for a long time and remind everyone that the club’s financial records are public.
City is also waiting for a decision from an independent commission about over 100 alleged breaches of Premier League financial rules from February 2023. The club has denied all accusations. Tebas Takes Action Against Manchester City.
As the investigations move forward, what happens next could really impact both Manchester City and football in Europe.
