European Commission opts against formal investigation despite complaint that state funding is enabling City and PSG to spend more than their rivals
Manchester City and Paris Saint-Germain have avoided formal action from the European Commission over accusations of financial support from Middle Eastern states that caused unfair competition.
The allegations, brought forward by La Liga president Javier Tebas in July 2023, centred on the claim that City and PSG were assisted by state resources from Abu Dhabi and Qatar respectively. Tebas said these state connections allowed the clubs to operate with financial muscle beyond the reach of their competitors, increasing their spending power on players and staff.
Both City and PSG have consistently denied any wrongdoing, saying their financial statements comply with all regulations concerning European football and have been audited accordingly.
After months of consideration, the European Commission has chosen not to open a formal investigation into the matter, according to The Guardian. Sources familiar with the EU’s internal workings said the decision came down to a lack of sufficient evidence in La Liga’s submission.
While the Commission has the power to tackle these kinds of cases, officials reportedly felt that evidence provided by La Liga did not meet the necessary threshold to proceed. According to one source from Brussels, the Commission’s limited resources made it unlikely they would take up such a complex sports-sector case unless there were clear grounds of success and a landmark ruling.
The Commission itself has not commented on the issue beyond its earlier statement from February, in which it confirmed that submissions relating to football clubs were being assessed but did not elaborate on specifics.
“The commission may examine information regarding any alleged foreign subsidies distorting the internal market, in any economic sector, including sports,” read the statement. “However, the commission cannot comment on ongoing assessments.”
But the La Liga president has not backed down from his vocal criticism of City. “City have a lot of companies in their group which lie outside the City Football Group structure, extra companies where they put their expenses,” he said in February this year.
“These other companies lose the money but not the club itself. We have reported them to the European Union [sic]. We have the facts and figures.”
