Tebas’s Financial Face-Off: La Liga vs Europe’s Money Monsters

La Liga's Financial Rules Under Scrutiny

Javier Tebas, president of La Liga, spoke at a football economy conference to defend the Spanish league's financial model and to critique rival clubs such as Manchester City and Paris Saint-Germain for their spending patterns.

He argues that European clubs operate under a system of continual losses and what he describes as undisciplined budgeting, contrasting this with La Liga's financial oversight.

According to Marca, Tebas maintains that Spanish clubs are governed by La Liga’s rules, while some European peers do not face the same oversight, enabling bigger spendings.

He emphasizes that in global football, European competitions feature clubs working under different systems; some are free from similar scrutiny or operate under different regimes. England, he notes, shows persistent concerns about debt levels in football, with losses appearing in aggregate terms.

He adds that a club can endure one to three loss years, but not four or more, pointing to Manchester City as an example of losses observed since the arrival of new ownership, and to Paris Saint‑Germain for seven consecutive years of significant deficits. Yet Tebas argues that Spanish teams still compete and have successes, including a large share of European titles this century.

He goes on to describe structural challenges facing Spanish football in competing with England and Germany, including matchday experience and ticketing, noting a notable annual revenue gap of roughly 600 million euros when compared with the Premier League and the Bundesliga.

He highlights a key gap: VIP seating. Spanish stadiums average a small percentage of VIP suites, significantly lagging behind Germany and England. Addressing this discrepancy is central to the CVC deal, which is expected to generate higher revenues for all clubs to attract top players. The solution, Tebas says, lies in upgrading venues, a process he believes could be resolved within four years.

He reaffirms his commitment to financial oversight, noting that there are more than 200 regulatory provisions. While the sector continually seeks loopholes, the rules are those approved by the clubs themselves. He argues that financial oversight is essentially an old accounting framework: what income, what expenses, and what debt remains. He points to four main income streams—television, matchday, advertising, and sponsorships—and notes that no La Liga club has been liquidated under this framework, a claim he uses to defend the system even as some debts have drawn scrutiny.

Explaining how the plan was implemented after his arrival, Tebas describes a focus on debt repayment and financial fair play, with centralized sale of broadcast rights proving essential. The move toward centralized rights sales, he says, helped launch a temporary regime of financial discipline and allowed the league to add around 500 million euros in a single year, funding debt restructuring while applying fair play rules. Without such norms, he warns, funds could have flowed to players, luxury cars, or yachts rather than to public debt relief.

His remarks are not novel; Tebas has long criticized the economic models used in England and France. He argues that inflows from wealthy owners have allowed some clubs to escape traditional controls, challenging the notion of a level playing field.

Manchester City, since the 2008 Abu Dhabi takeover, has faced repeated accusations of bending fair-play rules through inflated sponsorship deals and revenue distributions. PSG, despite major sponsorships and star signings like Neymar, Mbappé, and Messi, has been cited as another club facing persistent losses year after year.

From his perspective, these models threaten sustainable financial practices. He contends that competition cannot be fair if one side adheres to discipline while the other persists in ongoing, externally funded losses.

The financial oversight Tebas champions appears to be bearing fruit, with Spanish club debts to tax authorities decreasing since 2015 and La Liga becoming one of the European leagues least prone to insolvency.

Yet the debate continues: some argue that strict rules impede Spanish clubs’ transfer-market competitiveness and make it harder to renew top players, a dynamic underscored by high-profile departures when wage restrictions bite.

Tebas also stresses that the core issue remains stadium infrastructure. Spanish venues, though historically rich, lag in commercial exploitation of match days, while English and German venues increasingly monetize VIP experiences. The resulting gap is cited as around 600 million euros annually, a driver for the CVC agreement intended to bridge the divide within a few years while supporting league-wide competitiveness.

In closing, Tebas touts the aim of the CVC-backed plan: to modernize venues and boost revenue so Spanish clubs can better compete with Europe’s top leagues.

Punchline 1: In football finance, Tebas fires straight at the red numbers—and somehow keeps a straight face while the balance sheets duck for cover. Punchline 2: If budgets could shoot, La Liga would be a sniper academy, but for once the target isn’t a player’s transfer fee; it’s the debt that keeps dodging the spotlight.