La Liga have reported Manchester City and Paris Saint Germain to UEFA after accusing the clubs of breaching Financial Fair Play rules.
La Liga president Javier Tebas has also renewed his attack on the Premier League after claiming spending rules “do not exist” and the finances are out of control. Real Madrid missed out on signing Kylian Mbappe who has signed a three-year contract worth a staggering £200m and City also beat the Spanish champions to Erling Haaland who has moved to the Etihad for £51m.
La Liga reported City of FFP breaches in April while they made a complaint about PSG last week which comes shortly after Tebas threatened legal action after Mbappe did a last minute U-turn to snub Real Madrid to stay in Paris.
A La Liga statement said: “La Liga understands that the irregular financing of these clubs is carried out, either through direct money injections or through sponsorship and other contracts that do not correspond to market conditions or make economic sense.
“La Liga considers that these practices alter the ecosystem and the sustainability of football, harm all European clubs and leagues, and only serve to artificially inflate the market, with money not generated in football itself.”
Manchester City and PSG have both been contacted for comment and have previously strenuously denied wrongdoing.
In July 2020, the Court of Arbitration for Sport overturned a two-year Champions League ban imposed on City by Uefa for Financial Fair Play breaches. UEFA do have the power to take action against clubs who breach FFP rules but have relaxed their current spending rules after Covid, increasing the amount they could lose over three years from £25m to £50m and will give others an extra £10m leeway if they are in “good financial health.”
There is also frustration within Premier League clubs about Tebas’s continual outbursts as Ousmane Dembélé joined Barcelona for £118m but his contract has expired and he can leave for free. Philippe Coutinho cost £120m but has also been a financial disaster for Barcelona who are now stuck with having to offload players before they can register new players after spending beyond their means and are hundreds of millions of pounds in debt.
The Spanish legal system also ruled against Barcelona and Real Madrid for having tax breaks which were deemed illegal and Tebas’s remarks are seen by some English clubs as being hypocritical.
But Tebas said: “The big difference and what has made ours a financially sustainable league is our financial controls, which are different to UEFA's or those in other countries where they don't exist. Obviously, there were losses with the pandemic, but they aren't losses that have led to players or the Tax Agency not getting paid.
“The clubs, either because they had the capital or because they had the capacity to take on debt, have managed to pull through. That demonstrates the strength of our competition.”
