Manchester City have landed in a fresh legal battle as LaLiga president Javier Tebas reported the club to European Union over financial irregularities.
Man City are currently under investigation for 130 charges of breaching the Premier League’s Financial Fair Play rules.
The club is also at odds with the Premier League over associated party transactions.
Tebas has become the latest to take aim at Man City and owner Khaldoon Al Mubarak and the City Football Group.
He says although Man City are an English team and not an EU member, their commercial activities in Europe mean they are subject to EU laws.
He told the Financial Times Business of Football Summit that the complaint was made in July 2023.
He said the investigation has two prongs.
Firstly to verify the club are not manipulating their finances by using other companies to get round the rules. And secondly to stop football from falling into the hands of State owned entities with no oversight.
Tebas questioned certain transactions, saying Man City paid silly money for services and used other related companies to offload losses.
He said distorted market practices mean companies have to return funds. Although he didn’t specify potential sanctions, he confirmed the case is being looked at by the EU which is dealing with multiple other cases.
Man City have faced big challenges before. They won a two year ban from European competition in the Court of Arbitration for Sport after UEFA said they committed serious FFP breaches in 2020.
The investigation was triggered by a Der Spiegel report based on data from Portuguese hacker Rui Pinto.
Over nine seasons between 2009 and 2018 when the club won three Premier League titles, the club is accused of not providing accurate financial information.
Man City deny all the allegations and say their accounts are transparent.
Premier League CEO Richard Masters says the panel needs time to reach a decision.
The club have already won one legal battle against the Premier League with the tribunal saying associated party transactions are illegal.
Despite spending £172m on four players in the January transfer window and offering Erling Haaland the biggest contract in Premier League history, City are confident in their financials.
Football finance expert Stefan Borss says the charges highlight the wider debate around football finance.