**Both Manchester City and Paris Saint-Germain are not due to face any action following allegations made by La Liga president Javier Tebas earlier this month.**
Tebas alleged in his submission back in July 2023 that both Manchester City and PSG receive resources under non-market conditions from the governments of Abu Dhabi and Qatar respectively.
The La Liga boss claimed that such resources disrupted markets by enabling both clubs to spend more than rivals when it came to player recruitment and signing on of coaches, and that both sides obtain sponsorship income at levels that do not align with ‘fair market value’.
Tebas said in late February, “What worries me is Manchester City have a group of companies outside City Football Group. They saddle all expenses to these companies. For example, they have scouting or marketing companies who accrue high expenses, and invoice Manchester City for low amounts.
“It allows Manchester City to have a structure that circumvents rules. As a result, we’ve reported Manchester City to the European Commission. Even though they’re an English team, not part of the EU, they still have commercial activities in Europe.
“We first made the complaint in July 2023 and there are now regulations in place allowing the EU to look at companies like City Football Group. Our case against Manchester City relates to two things; checking Manchester City are not using other companies to cheat the system, and a bigger battle to stop football ending up in the hands of State-owned entities without proper policing.
“We also take issue with some of the prices the club has paid, and question how the club can saddle losses on other related companies not directly part of City Football Group.”
Now however, it appears as though the La Liga chief will be hit with further disappointment concerning Manchester City and the prospect of any sanctions coming to the fore as a result of his allegations submitted to relevant bodies.
That is according to [The Guardian’s Matt Hughes](https://www.theguardian.com/football/2025/may/15/manchester-city-and-psg-to-face-no-action-over-la-liga-competition-breach-allegations), who reveals that neither Manchester City or PSG will face any action from the European Commission after Javier Tebas’ complaints about an alleged use of state resources under the EU’s foreign subsidies regulation.
The report further reveals that both clubs denied the allegations made and pointed to their accounts as proof of no wrongdoing, while also insisting that Tebas has a history of attacking them owing to ‘envy of their success and financial resources’.
Sources have indicated that a formal investigation will not take place following Tebas’ allegations, while a further source in Brussels said it tended to take up complaints that have the ‘potential to develop into test cases with significant implications across different sectors’.
The Guardian has also revealed La Liga’s submission provided ‘insufficient evidence of rule breaking’, and linking Manchester City and PSG’s commercial deals with companies related to the Abu Dhabi and Qatar governments is not enough to meet the investigatory threshold.
**This is a developing story. More to follow.**