LaLiga files EC complaint over ‘market distorting’ effect of PSG’s state funding

August 13 – LaLiga has kept up its crusade against Qatari-owned Paris St Germain with its latest complaint being to the European Commission asserting that subsidies received by the club from Qatar distort the market and contravene new European Union Foreign Subsidies Regulation.

LaLiga, under the the European Regulation on Foreign Subsidies Distorting the Internal Market (the “Foreign Subsidies Regulation”), has lodged a complaint alleging PSG’s funding mechanisms  seriously distort the European Union’s (EU) internal market.

The new regulation became applicable 12 July 2023, concerns foreign subsidies granted by non-EU states to companies carrying out economic activity within the internal market within a period of five years prior to the implementation of the regulation. 

LaLiga says taht 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. 

LaLiga sayd PSG uses the foreign subsidies to pay top players and coaches disproportionate to the the club’s potential in a normal market situation. LaLiga also maintains its long held argument that PSG sponsorship income does not correspond to market values. “This enables them (PSG) to boost their sporting performance, as well as affecting the ability of rival clubs to recruit,” said LaLiga.

“This improved sporting position then enables PSG to increase its competitive position in markets related to sporting competitions (e.g. those for the audiovisual marketing of competitions or the sponsorship market), thereby artificially increasing the club’s value within said markets.”

LaLiga said it hopes the EC, using its new regulatory tool, “will take the necessary measures to eliminate market distortions such as those described above, which seriously damage the sporting ecosystem.”

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