Manchester City are set to demand an apology from Bayern Munich president Uli Hoeness.
Hoeness made extraordinary claims that owner Sheikh Mansour pays for transfers by ramping up the price of oil.
City are furious at what they see as a slur on the way they conduct their business from Hoeness, who is a convicted tax fraudster.
A senior source at the club said: “It was the remark of a smug, arrogant egotist.
“We are also concerned that there may be a racist element to what Hoeness has claimed.” Sunday Mirror Sport understands that the matter has been placed in the hands of City’s lawyers.
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And it is likely that, unless Hoeness makes a full public apology, Etihad bosses will seek legal redress.
Hoeness, 67, is a former German international striker who played for Bayern for nine years.
He knows Guardiola from the Catalan’s time in charge at the Bavarian giants.
He claimed at a conference in Munich: “My friend Pep told me what happens when he signs a player costing €100million.
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“He puts some videos together and goes to see the sheikh.
“There is an opulent feast put on, during which he teaches the video to him and the money is transferred.
“The next day, the sheikh raises the price of oil to recoup the money.”
UEFA will not want a row between two of Europe’s most high-profile clubs to escalate as City push for an apology.
