PL charge City for alleged breaches of financial rules

KS55 said:
The EC said there was a lack of cogent evidence in the Tebas submission which rather squashed Tebas claim: “We have all the figures.” As you say, he’s just a loud mouth venting his hatred of Muslims.
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Meaning: what you have provided is neither clear, compelling or convincing. In other words, you have wasted our time, you cretin.
 
Prestwich_Blue said:
Which, oddly, the left-wing leaning Guardian has never called him out on. But maybe not so odd as they seem to hate Muslim football club owners as well.
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please note Stefan, hope your getting ready for the real 'told you so' moment - can't be much longer ;-)

www.fourfourtwo.com

Manchester City to be found NOT guilty of 115 charges against them, according to football finance expert

Manchester City are almost certain not to be found guilty of the FFP allegations surrounding the club, according to one expert
www.fourfourtwo.com www.fourfourtwo.com
 
Prestwich_Blue said:
Which, oddly, the left-wing leaning Guardian has never called him out on. But maybe not so odd as they seem to hate Muslim football club owners as well.
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Yes, they have criticised City from time to time. By ‘criticised’ I mean ‘told lies’.
The lie I particularly laughed at was the claim that we got a regular injection of funds from the AbuDhabi sovereign wealth fund. Have they read our accounts; are they falsified?
Well, what do you expect from a ‘line of grinning beards’?
 
Manc in London said:
Meaning: what you have provided is neither clear, compelling or convincing. In other words, you have wasted our time, you cretin.
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Stefan's take from earlier in the year

6VYFztXp_bigger.jpg

https://x.com/slbsn
EXPLAINED: FFP, PSR, SCR, FSR, lets call the whole thing off.

Has Javier Tebas discovered the new Enron hiding in plain sight?La Liga has made complaints under the recently implemented EU Foreign Subsidies Regulation (FSR) to challenge PSG and City’s funding.

These complaints were made in 2023 (formally re PSG but La Liga did not announce a complaint vs City). If the City complaint even existed it is most likely a closed investigation. What is FSR?The Foreign Subsidies Regulation (FSR) is an EU law (Regulation 2022/2560) designed to stop foreign state funds from distorting competition in Europe.

Before this, EU rules could control state aid from EU governments but not from non-EU countries (like the UAE, Qatar, or Saudi Arabia).The FSR introduced in July 2023 closed that loophole, meaning if a foreign state is proved to prop up a company (ie a club/MCO), the EU can investigate and impose penalties.

What is a “foreign subsidy”?Defined in Article 3, a foreign subsidy is any financial contribution from a non-EU government (or an entity it controls) that gives an unfair market advantage.Examples: - Direct grants or capital injections (free money)- Cheap loans or loan guarantees (below market rates)- Tax breaks or debt write-offs-

Overpaid sponsorships—like, say, Etihad or Qatar Airways allegedly paying City/PSG more than market value When does FSR apply?It doesn’t catch every deal—thresholds apply (Article 2):- Mergers/acquisitions- Public contracts- Situations with EU aspects - CFG owns clubs in Spain, France, and Belgium, plus earns UEFA revenue.

This means that even though City is an English club, CFG’s EU presence brings it, potentially, under FSR rules. What is a market distortion?A subsidy distorts the market if it gives an unfair advantage (Article 4). Tebas argues that City’s sponsorships let them afford higher wages, sign top players, and outspend EU rivals unfairly. How does an FSR investigation work?

The European Commission can investigate in two ways:- Companies must notify large deals that hit FSR thresholds.- The EC can investigate on its own initiative, based on complaints.La Liga allegedly filed a complaint in July/August 2023 (https://laliga.com/en-GB/news/laliga-files-complaint-against-psg-with-european-commission…), arguing Qatar (and UAE?)-backed funds distort European football - we only know for sure about the PSG complaint but La Liga briefed some journalists at the time re City and Newcastle https://dailymail.co.uk/sport/football/article-12449237/Manchester-City-Newcastle-fear-new-probes-European-Commission-official-complaints-owner-state-subsidies-MONEY.html….

The EC can: - Demand financial data (contracts, emails, sponsorship valuations)- Question third parties (eg Etihad, UEFA)- Inspect offices, even outside the EU (with cooperation)If it finds strong evidence, it launches a formal Phase 2 investigation (90+ days but extendable). There is no evidence that any investigation was ever started in respect of City or PSG although I understand the EC have confirmed receipt of a historic complaint.

There is no reference to any ongoing FSR investigation in City's accounts for example. Nor is there any evidence on the EC's websites. What are the penalties?The EU can impose major sanctions (Articles 6 and 44):- Repay "subsidies" with interest - Cap sponsorship payments- Sell assets (could CFG be forced to divest of its interest in Girona)- Fines up to 10% of turnoverBut wait, the first FSR case was... Etisalat (now called e&)

The EC investigated whether a guarantee and a loan provided by the UAE to e& risked distorting competition in the EU internal market.According to the EC, there were sufficient indications that e& had benefitted from foreign subsidies in the form of “an unlimited guarantee” and “a loan from UAE-controlled banks” that directly facilitated the company’s acquisition of telecoms operator PPF Telecom Group BV, excluding PPF’s Czech business.

The deal was ultimately approved following the EC's first M&A related in-depth investigation under the FSR:- e& agreed that it had to ring-fence EU funds from state-backed money- The deal was approved only if the company followed strict financial separation rules- EU agreed with e& monitoring for 10+ years
https://cliffordchance.com/insights/resources/blogs/antitrust-fdi-insights/2024/09/learnings-from-the-first-fsr-clearance-subject-to-remedies.html…

It is very unlikely there is anything in this latest Tebas rant/story. That said should live cases against City and PSG go against the clubs, the risk of investigation would obviously greatly increase.

Last edited10:27 AM · Feb 28, 2025
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