Manchester City and Paris Saint-Germain won’t be facing a lawsuit from the European Commission regarding alleged breaches of EU competition law. La Liga President Javier Tebas had made a complaint about the clubs, suggesting they were benefiting from state resources in violation of EU’s foreign subsidy rules.
In July 2023, Tebas claimed that both clubs receive funding from their respective governments, which allows them to outspend competitors on players and coaches. He argued that their sponsorship deals are inflated compared to fair market values. The clubs, however, refuted these claims, stating that they are baseless and even pointed to evidence of fraud in the accusations. They also mentioned that Tebas has a track record of targeting them out of frustration over their achievements.
Sources familiar with the committee’s initial review of Tebas’ complaints suggest that no formal investigation will be launched at this time. Their resources for investigations are limited. A Brussels source mentioned that the committee generally pursues complaints that could become significant test cases across various sectors. They noted that while elite clubs may be violating European football rules, the evidence presented by Tebas lacked the weight required to trigger an investigation. Simply connecting commercial dealings between Manchester City, PSG, and the subsidies from the Abu Dhabi and Qatar governments does not meet the threshold needed for formal action, according to sources.
Additionally, the potential costs of investigating these clubs, along with the substantial resources they could allocate for their defense, may influence the committee’s decision. The Premier League took three years to investigate claims against Manchester City regarding financial fair play violations before introducing over 130 charges in February 2023. The Independent Committee is still awaiting a verdict on this matter more than five years into the investigation, with the club adamantly denying any wrongdoing.
The committee chose not to comment further beyond a previous statement from February, where they acknowledged they were assessing the submissions related to these football clubs. They indicated that the Commission can look into allegations of foreign subsidies distorting the internal market across all economic sectors, including sports. However, further commentary on ongoing evaluations was not provided.
Tebas stirred controversy earlier this year by comparing the financial management of Manchester City to the now-defunct US energy company Enron, which faced one of the largest corporate bankruptcies due to extensive fraud in 2001.
He remarked at a Financial Times summit in February that there are indeed “facts and numbers” to consider.
As for Manchester City, PSG, and La Liga, none have offered any comments.
