LaLiga announced this Saturday that it 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 (UE)”.
The Spanish football association attends 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 “Regulation of Foreign Subsidies”)”.
Said standard, which is applicable from July 12, 2023, affects foreign subsidiesgranted by States outside the EU to companies that carry out an economic activity in the internal market, including those that come from public companies controlled directly or indirectly by a State.
LaLiga also points out that this even affects “those granted in the period of five years prior to the application of the aforementioned Regulation”. “LaLiga has filed a complaint considering that the PSG has received foreign subsidies from the State of Qatarwhich has allowed it to improve its competitive position and generate significant distortions in several national and EU markets,” it explains in its statement.
LaLiga, which has already carried out several actions in this direction, once again insists on pursue PSG’s way of operating, since it points out that “it obtains resources in non-market conditions that distort different closely related markets”. According to the employers, this is how PSG you can hire the best footballers and coaches well beyond your means in a normal market scenario and obtain income from sports sponsorships for figures that do not correspond to market price values.
“Besides, this better sporting positioning would allow PSG to improver, in addition, its competitive position in the markets adjacent to the sports competition (for example, the audiovisual marketing markets of the competitions or the sponsorship market), thus determining an artificial increase in the value of the club in the market”, adds The league.
“That is why LaLiga trusts that the European Commission, thanks to this new regulatory tool, take the necessary measures to eliminate market distortions like those described, which seriously harm the sports ecosystem,” he concludes.
The complaint comes the day that confirmed the signing of the French striker Ousmane Dembelefrom FC Barcelona, by PSG, a club that also tries to retain its striker Kylian Mbappé at any cost.
2023-08-12 17:02:19
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