Manchester City have been reported to the European Union by LaLiga president Javier Tebas over alleged financial irregularities.
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.
Speaking during the FT’s Business of Football Summit, 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.”
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.
