La Liga’s Javier Tebas accuses Man City of financial deception, comparing it to the Enron scandal

Manchester City have been accused of engaging in an Enron-style financial deception by La Liga president Javier Tebas. Speaking at the Financial Times Business of Football Summit, Tebas claimed the club used a network of related companies in the United Arab Emirates to conceal losses and manipulate its balance sheet.

Tebas revealed that La Liga lodged a formal complaint against City with the European Commission in the summer of 2023. He asserted that the Commission is currently investigating the matter. While Manchester City declined to comment, sources close to the club strongly denied the allegations and pointed to their publicly available accounts as proof of financial compliance.

Comparing the case to the infamous Enron scandal, Tebas accused City of shifting losses to external companies within its group. He stated: “City have a lot of companies outside their official City Football Group structure. These companies absorb expenses, ensuring that losses don’t appear on the club’s books. This is exactly what Enron did.”

He further explained how City allegedly operated, stating: “They have a scouting company, a marketing company. These entities incur significant expenses but invoice City for less than they should. As a result, City’s official costs appear lower than they actually are.”

La Liga’s complaint, seen by PA, argues that City’s financial model causes serious distortions in European markets. It claims that foreign subsidies from the UAE have given City an unfair advantage, allowing them to sign elite players and coaches beyond normal market capabilities. Additionally, La Liga alleges that inflated sponsorship deals have further strengthened City’s competitive position at the expense of rival clubs.

When asked about the investigation, Tebas confirmed it remains in progress. “We haven’t had a reply yet, so it must still be in the investigation phase,” he said.

City’s ongoing legal battles do not end there. The club also awaits a verdict from an independent commission after being charged by the Premier League in February 2023 with over 100 breaches of league regulations. They have vehemently denied those accusations.

Tebas has a long history of criticising City, and club insiders dismiss his latest claims as another baseless attack. Despite the controversy, the European Commission has yet to confirm the status of its investigation into La Liga’s complaint.