Man City & PSG escape punishment after La Liga president Javier Tebas lodges complaint over alleged EU competition law breaches

La Liga president Tebas launched a formal complaint in July 2023, accusing City and PSG of breaching European Union competition laws. His claims centred on allegations that both clubs were unfairly benefiting from state support via non-commercial deals with entities linked to the governments of Abu Dhabi and Qatar, respectively. Tebas argued that these arrangements distorted the market by allowing the two clubs to spend disproportionate amounts on transfers and wages. He alleged that such financial muscle, backed by non-market sources, gave them an unfair edge over traditional clubs operating within conventional revenue streams.

Both clubs firmly denied the accusations and pointed to their audited financial statements as evidence of compliance. Club insiders also criticised Tebas’s motivations, attributing his actions to professional jealousy and a long-standing pattern of hostility toward clubs with state-backed ownership.

Despite Tebas's fervent appeal, the European Commission has reportedly decided not to move forward with a formal investigation. According to The Guardian,the complaint did not present sufficient evidence to justify initiating proceedings under the EU’s foreign subsidies regulation.

A key issue, according to one source in Brussels, was the lack of a direct legal link between the clubs’ commercial revenue and the kind of foreign state aid prohibited under the regulation. While the involvement of state-related sponsors was acknowledged, the evidence did not meet the necessary threshold for triggering a broader legal inquiry. Officials are reportedly focused on cases that could serve as precedent-setting challenges across multiple industries. While football is undeniably high-profile, the submission from La Liga lacked the depth or scope required to elevate it into a landmark legal matter.

Tensions between Tebas and City were already high before the complaint. In February, Tebas ignited further controversy by likening City’s financial structure to that of Enron, the notorious American energy company that collapsed in 2001 after one of the largest accounting scandals in corporate history.

For now, both City and PSG remain untouched by any regulatory consequences stemming from the EU complaint. The ruling effectively shields them from Tebas’s most serious accusations, although the underlying debate over state ownership and financial ethics in football is far from settled. As financial fair play rules evolve and as governing bodies face growing pressure to address competitive imbalance, the spotlight on clubs like City and PSG is unlikely to fade. However, unless future complaints are replete with clearer legal evidence, they may continue to avoid significant repercussions.