A PYMNTS Company

EU: Man City to challenge record fine through competition law

 |  May 12, 2014

Top English soccer club Manchester City, which scored its fourth English league title last weekend, will reportedly challenged a fine issued to the team for breaching Financial Fair Play rules and argue against the penalty using EU competition law.

Man City was fined about $82.5 million by the UEFA Champions League for violating its FFP policy. The rules were intended to prevent teams from spending more than they earn to win games; eventually the rules were used to prevent wealthy team owners from unfairly competing with rivals.

Man City was fined along with eight other soccer clubs, but the British club remains the only to have no settled with officials.

Now, reports say Man City could possible approach the European Commission with a complaint to seek a reduced fine. Reports say a review of such a complaint would likely center on laws of price-fixing and dominance abuse, not state aid.

The team could, in theory, argue to the Commission that the fine constitutes a barrier to market entry, among other arguments.

Manchester City was fined for losing more than $210 million over the last two seasons; UEFA rules cap the amount of losses teams can have at $61.9 million.

Full content: Financial Mirror

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.