LaLiga files COMPLAINT against PSG for 'DAMAGING the sporting ecosystem'
Tom Weber
- Updated: 12 Aug 2023 12:43 CDT
- 3 min read
LaLiga has filed a complaint against Paris Saint-Germain with the European Commission, the league has announced.
The Spanish top division alleges that PSG's Qatari ownership distorts the European Union's internal market and that it goes against EU regulations. This comes after PSG announced the signing of Ousmane Dembele from LaLiga side Barcelona, though whether there is any connection is not known.
LaLiga president Javier Tebas has been quite outspoken about what he believes are unfair mechanisms that allow clubs and leagues to have an unfair advantage over their peers.
READ: Mbappe drops Real Madrid transfer hint with Dembele welcome message
Just a few days ago, Tebas voiced his belief that "the Premier League and Saudi Arabia are ruining the transfer market," while also claiming that the English top flight is not financially sustainable and that millionaire and billionaire ownership distorts the competition.
Now, LaLiga has lodged a complaint against PSG.
What does LaLiga allege?
"In response to the new policy direction arising from the implementation of the European Regulation on Foreign Subsidies Distorting the Internal Market...LALIGA has lodged a complaint with the European Commission regarding PSG's funding mechanisms, which seriously distort the European Union's (EU) internal market," the league wrote on its website.
"This regulation...concerns foreign subsidies granted by non-EU states to companies carrying out economic activity within the internal market, taking into account those given by public companies that are, directly or indirectly, controlled by a state, including subsidies granted within a period of five years prior to the implementation of the regulation."
"As a result, LALIGA has filed a complaint alleging that PSG has received foreign subsidies from the State of Qatar, which has allowed it to improve its competitive position, thus generating significant distortions in several national and EU markets."
READ: Mbappe WILL join Real Madrid this summer
"Specifically...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. It is also able to secure sponsorship income which does not correspond to market values. This enables them to boost their sporting performance, as well as affecting the ability of rival clubs to recruit."
"This improved sporting position then enables PSG to increase its competitive position in markets related to sporting competitions...thereby artificially increasing the club's value within said markets...LALIGA trusts that the European Commission...will take the necessary measures to eliminate market distortions such as those described above, which seriously damage the sporting ecosystem."
