Online Reporter
LONDON. − Manchester City have been accused of an “Enron-style” financial deception by Spanish LaLiga boss Javier Tebas.
Outspoken Tebas stunned an audience in London as he claimed the Etihad outfit had hidden losses that would have impacted their financial fair play status by hiding them in related Abu Dhabi-owned companies.
Manchester City have dismissed the claims as “without foundation”.
Tebas directly referenced the Enron scandal, which saw the US energy giant hit with a £40billion fraud claim in 2001 and led to the collapse of a major accounting firm and the jailing of senior executives.
The Spaniard told the FT Business of Football Summit: “The City case is one where we believe they have put the losses on the companies that are not officially part of City Football Group.
“You remember the case in the USA, the Enron case. They put losses into different companies. These are similar cases.
“They have a scouting company, a marketing company. That’s where they have very high expenses. They invoice City for less money.
“City have costs that are less than if they didn’t have this circle of companies around.
“These other companies lose the money but not the club itself.
“If you have these high expenses and the companies lose money eventually City will lose money.
“But they have structural costs that are being carried by the companies around them, which are used to avoid the regulations.” Tebas’ claims brought an angry reaction from City, who privately dismissed any allegations as without foundation and could even bring legal action.− The Sun
