La Liga lodged an official complaint against PSG following introduction of new rules
In an unprecedented move, La Liga has lodged an official complaint against Paris Saint-Germain (PSG) to the European Commission. The Spanish top-flight league's actions are based on the allegations that the Parisians have received financial aid from the Gulf state.
The argument from the league (via AFP) is that the French giants are distorting both national and European Union markets through subsidies from Qatar. This has enabled the Parisian club to sign elite players and coaches, skewing the market landscape and the competitive balance of football in Europe.
In an official statement, La Liga articulated (via TheMadridZone):
"PSG obtains resources on non-market terms which distort several closely related markets, allowing PSG to use those foreign subsidies to sign top players and coaches well above its potential in a normal market situation."
Furthermore, LaLiga accused the Parisians of securing sponsorship income, not in line with market values, allowing them to boost their sporting performance. This legal manoeuvre comes in the wake of a newly-enacted EU foreign subsidies regulation, which took effect from July 12, 2023.
La Liga is hopeful that this regulation will curb PSG's controversial strategies (via TheMadridZone):
"This better sports positioning would also allow PSG to improve its competitive position in the markets adjacent to the sports competition (for example, the audiovisual marketing markets of competitions or the sponsorship market), thereby determining an artificial increase in the value of the club in the market.
"That is why La Liga trusts that the European Commission, thanks to this new regulatory tool, will take the necessary measures to eliminate market distortions such as those described, which seriously harm the sports ecosystem."
PSG make massive money moves as La Liga raises concerns around recent signings and contracts
On the pitch, the Parisians' ambitious financial power play was recently evidenced by their €50 million signing of Ousmane Dembele from Spanish champions Barcelona.
Over the past 10 years, the French giants have been no strangers to high-profile signings, with their €222 million splash on Barca's Neymar in 2017 setting a world record.
Other notable actions include the renewal of star striker Kylian Mbappe's contract in 2022, a move that had seemed unlikely as he was poised to join Real Madrid on a free transfer. La Liga president Javier Tebas notably called the forward's new deal, an "insult to football" (via APF).
Currently, Mbappe finds himself in a contractual standoff with the Parisians, refusing to renew his existing agreement. This leaves the possibility of his departure for free in the summer of 2024.
Last year, the Spanish top-flight league also reported Premier League champions Manchester City, owned by an Abu Dhabi-based group, to UEFA, alleging violations of financial fair play rules.