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Official: La Liga file complaint against PSG

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La Liga president Javier Tebas. (Photo via X)

La Liga have publish an official statement saying they have filed a complaint against French club Paris Saint-Germain.

The official statement read: “La Liga, in response to the new course of action that represents the beginning of the application of the European Regulation on foreign subsidies that distort the internal market (the “Foreign Subsidies Regulation”), has submitted a letter to the European Commission to denounce that the financing mechanisms of the PSG generate a serious distortion in the internal market of the European Union (EU).”

“This rule, which has been applicable since July 12, 2023, affects foreign subsidies, granted by States outside the EU to companies that exercise an economic activity in the internal market, including those that come from public companies controlled directly or indirectly by a State, including even those granted in the five-year period prior to the application of the aforementioned Regulation.”

“Therefore, La Liga has filed a complaint considering that the PSG has received foreign subsidies from the State of Qatar, which has allowed it to improve its competitive position and generate significant distortions in several national and EU markets.”

“Specifically, as analyzed in the aforementioned complaint, this entity obtains resources in out-of-market conditions that distort different closely related markets, allowing that with these foreign subsidies the PSG to hire the best footballers and coaches well beyond its possibilities in a normal market scenario and obtain income from sports sponsorships for figures that do not correspond to values at market price.”

“Circumstance that allows you to improve, on the other hand, your sports performance, in addition to affecting the contracting capacity of rival clubs.

On the other hand, 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.”

It remains to be seen whether the French club will reply to the complaint.

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