Real Madrid have denied allegations of financial mismanagement levelled against them in the British media.

A report emerged earlier this week accusing Los Blancos of failing to account for €122m out of their €135m in 'other operating expenses', suggesting that a future marketing agreement with private equity group Providence may have led to some misreporting of finances.

Should such allegations prove correct, Real Madrid would be at risk of breaching UEFA Financial Fair Play regulations.

While the Madrid outfit have not spoken publicly about the accusations, sources from the club have spoken to both Marca and Cadena Cope to deny any wrongdoing.

Those same sources state that the €122m expenses are 'not unexplained', although no further detail is provided.

READ THE LATEST REAL MADRID NEWS, TRANSFER RUMOURS & GOSSIP

Real Madrid have been active in the summer transfer market already, striking a deal to sign midfielder Jude Bellingham for an initial €103m before a €17.5m spend on Arda Guler, while veteran striker Joselu has also arrived on a season-long loan deal from Espanyol.

A new big-name forward has also been discussed. Real Madrid were among the early suitors of Kai Havertz before his move to Arsenal, while Tottenham's Harry Kane was emerging as a top target before Kylian Mbappe's public clash with Paris Saint-Germain forced a rethink at the Bernabeu.

PSG are adamant that Mbappe will not be allowed to leave on a free transfer at the end of the coming season but will struggle to find a suitor willing to meet their asking price for a player who is widely accepted to be one of the best in the world.

Los Blancos are reluctant to spend a huge fee on a player entering the final year of their contract - taking that stance in the same summer they agreed to terminate Eden Hazard's deal, four years after signing him for well over £100m towards the end of his Chelsea contract.

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This article was originally published on 90min as Real Madrid respond to Financial Fair Play allegations .