rival City were outplayed and comprehensively beaten by teams with far more limited resources in the Europa League Thursday. United lost 3-2 at home to a fearless and skilful Athletic Bilbao, its second successive European defeat at Old Trafford, in the first leg of its round-of-16 tie. Central defender Xandao scored with a cheeky back-heel to give Sporting a 1-0 win over City in Lisbon, ending the Premier League leader's run of six straight wins. Valencia, 4-2 winner over PSV Eindhoven at home, and Atletico Madrid, which beat Besiktas 3-1, completed an excellent night for Spanish clubs. A Luuk de Jong penalty gave Twente Enschede a 1-0 win at home to Schalke 04 and Olympiakos Piraeus won by the same score away to Ukraine's Metalist Kharkiv thanks to David Fuster's second-half strike, the Greek champions' ninth successive win in all competitions. AZ Alkmaar beat Udinese 2-0 and Standard Liege were held 2-2 at home by Hanover 96 in the other ties. United, beaten 2-1 at home by Ajax Amsterdam in the previous round, has won only once in five European outings at Old Trafford this season. Athletic took the game to United, pressuring it in its own half in a style which has become the trademark of its eccentric Argentine coach Marcelo Bielsa who led Chile to the last 16 of the 2010 World Cup. Although Wayne Rooney gave United a 21st minute lead, it was completely against the run of play and Athletic continued to push forward, creating numerous chances while Bielsa paced up and down his technical area, immersed in thought in his characteristic style. The equalizer came in the 41st minute when a well-worked move ended with Fernando Llorente ghosting in to meet Markel Susaeta's chipped cross with a powerful low header. Athletic's fans out-sung the home supporters and were given more to celebrate in the 71st minute with a superbly worked move which ended with Ander Herrera flicking the ball over the United rearguard for Oscar De Marcos to hook the ball in with a first time shot. That goal had also been on the cards and it got worse for the hosts with a bizarre third which stemmed from a free kick awarded to Bilbao because United defender Patrick Evra kicked the ball after his left boot had fallen off, infringing the rules. Athletic swiftly attacked and De Marcos's shot was parried by David De Gea. Although there seemed to be no Athletic player in sight, Rafael was caught napping and the always dangerous Iker Muniain stole in to fire the ball into the roof to net. Rooney pulled one back with a injury-time penalty to keep United in the tie, although the task of scoring at least two goals at a hostile San Mames stadium is a daunting one. City, which like United parachuted into the tournament after being knocked out of the Champions League in the group stage, was also upstaged by a fluent passing team.