Manchester City and Newcastle could face an investigation by the European Commission for alleged breaches of new rules on ‘state subsidies’.
The commission confirmed to The Mail on Sunday that it has received multi-party complaints against the two clubs over new rules designed to prevent ‘state aid’ from distorting markets across the continent.
Whether this will have any consequences remains to be seen, but this is an important development, not least on a political level. City have always maintained that the club is a personal venture of Sheikh Mansour, member of Abu Dhabi’s ruling family and Deputy Prime Minister of the United Arab Emirates.
The Saudi Public Investment Fund (PIF), which owns 80 percent of Newcastle and is chaired by Saudi Arabia’s de facto ruler, Mohammed bin Salman, has always claimed to be an impartial, independent investment entity. The complaints are likely to focus on whether City is actually under the control of the UAE state and that Newcastle is a Saudi Arabian state tool.
A well-informed source with knowledge of the Premier League’s financial and legal frameworks told In The Money that City and Newcastle are under investigation by the European Commission, following complaints that state funding from the pair has “seriously distorted” EU markets. this case in the football industry.
Manchester City and Newcastle could face an investigation by the European Commission over alleged breaches of new rules on ‘state subsidies’
The committee has received complaints from several parties against the two clubs about new rules designed to prevent ‘state aid’.
Whether this will have consequences remains to be seen, but this is an important development
We specifically asked the committee whether these two clubs are being looked at. A spokesman for the committee said: “We can confirm receipt of submissions relating to football clubs, including UK clubs, which we are reviewing.” The spokesperson added that the complaints fall under the Foreign Subsidies Regulations (FSR), which became law in January and have been in effect since June. The Foreign Subsidies Regulation addresses distortions caused by financial contributions made by non-EU governments to companies engaged in economic activities in the EU’s internal market.
Despite Britain leaving the EU following the Brexit referendum, Premier League clubs are still subject to the FSR.
The EC says: ‘In recent years, foreign subsidies appear to have distorted the EU’s internal market, including by giving their recipients an unfair advantage when taking over companies or obtaining public contracts in the EU, at the expense of fair competition. .’
It has not been confirmed who made the complaints about City and Newcastle. The MoS reported in June that City’s parent company, City Football Group, was the subject of a complaint in Belgium over alleged state funding of CFG club Lommel SK.
Local regulators said there was no reason to answer, so it was left to the European Commission to consider.
It is likely that there has been a complaint from La Liga about City and Newcastle now that the FSR is active. La Liga chairman Javier Tebas has long been a critic of what he calls “state-funded clubs”, including City.
La Liga declined to comment, although they recently confirmed they had lodged a formal complaint with the European Commission about state aid unfairly benefiting Paris Saint-Germain, which are in fact owned and funded by the government of Qatar .
City’s rise to supremacy in the Mansour era has puzzled countless others
City’s rise to supremacy in the Mansour era has puzzled countless others as they have won seven Premier League titles, three FA Cups, six League Cups and the Champions League since 2008.
Newcastle has been among the top spenders in Europe since taking over PIF in October 2021, spending some £400 million on Kieran Trippier, Bruno Guimaraes, Alexander Isak, Anthony Gordon and others.
We specifically asked the committee whether these two clubs are being looked at. A spokesman for the committee said: “We can confirm receipt of submissions relating to football clubs, including UK clubs, which we are reviewing.” The spokesperson added that the complaints fall under the Foreign Subsidies Regulations (FSR), which became law in January and have been in effect since June. The Foreign Subsidies Regulation addresses distortions caused by financial contributions made by non-EU governments to companies engaged in economic activities in the EU’s internal market.
Despite Britain leaving the EU following the Brexit referendum, Premier League clubs are still subject to the FSR.
The EC says: ‘In recent years, foreign subsidies appear to have distorted the EU’s internal market, including by giving their recipients an unfair advantage when taking over companies or obtaining public contracts in the EU, at the expense of fair competition. .’
Man City have won seven Premier League titles, three FA Cups, six League Cups and the Champions League since 2008
It has not been confirmed who made the complaints about City and Newcastle. The MoS reported in June that City’s parent company, City Football Group, was the subject of a complaint in Belgium over alleged state funding of CFG club Lommel SK.
Local regulators said there was no reason to answer, so it was left to the European Commission to consider.
It is likely that there has been a complaint from La Liga about City and Newcastle now that the FSR is active. La Liga chairman Javier Tebas has long been a critic of what he calls “state-funded clubs”, including City.
La Liga declined to comment, although they recently confirmed they had lodged a formal complaint with the European Commission about state aid unfairly benefiting Paris Saint-Germain, which are in fact owned and funded by the government of Qatar .
City’s rise to supremacy in the Mansour era has puzzled countless others as they have won seven Premier League titles, three FA Cups, six League Cups and the Champions League since 2008.
Newcastle has been among the top spenders in Europe since taking over PIF in October 2021, spending some £400 million on Kieran Trippier, Bruno Guimaraes, Alexander Isak, Anthony Gordon and others.