LaLiga Files Complaint with European Commission Against PSG’s Financial Practices

LaLiga, the top-flight Spanish football league, has taken action by filing a complaint with the European Commission regarding Paris St Germain’s financial practices.

Specifically, LaLiga alleges that the Qatari-backed French club is distorting markets through subsidies received from the Gulf state.

The complaint, submitted on Saturday, emphasizes that these practices have enabled PSG, owned by Qatar Sports Investments since 2011, to acquire high-profile players and coaches at levels significantly beyond what would be feasible in a typical market environment.

LaLiga stated that PSG has benefited from foreign subsidies provided by Qatar, which have facilitated its rise in competitiveness. However, this advantage has resulted in significant distortions within national and EU markets.

In response to such concerns, a commission regulation addressing foreign subsidies was recently implemented, granting the European Commission the authority to investigate financial contributions made by non-EU countries to companies operating within the EU. If necessary, corrective actions will be undertaken to mitigate any resultant distortions.

LaLiga contends that PSG’s acquisition of resources under non-market terms has created distortions across closely linked markets. Moreover, the club has secured sponsorship income that is not commensurate with market values.

These advantages have not only bolstered PSG’s sporting performance but have also affected the recruitment capabilities of rival clubs. Consequently, LaLiga expresses its confidence that the European Commission, empowered by this new regulatory framework, will take appropriate measures to rectify market distortions and safeguard the integrity of the sporting ecosystem.

It is worth noting that LaLiga had previously filed a complaint against PSG and Manchester City with UEFA, the European soccer governing body, on allegations of financial fair-play breaches.

PSG’s extravagant spending in recent years, exemplified by the world-record transfer fee of €222 million ($243 million) paid for Brazilian forward Neymar in 2017, as well as the €180 million investment in striker Kylian Mbappe in 2018, further substantiates the concerns raised by LaLiga.

Additionally, PSG opted to renew Mbappe’s contract last year, despite widespread speculation of a potential move to Real Madrid. However, tensions have arisen between Mbappe and PSG regarding his future, with the French forward publicly stating his refusal to extend his current contract, which concludes at the end of the 2023-24 season.

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