Spanish football league La Liga has filed a complaint with the European Commission against Qatari-owned French club Paris St-Germain, alleging that its funding mechanism breaches EU competition laws.
La Liga in a statement Saturday cited the EU’s recent Foreign Subsidies Regulation, which establishes limits on EU companies receiving funds from non-EU states when that could lead to market distortions.
Since 2011, Paris St-Germain (PSG) has been owned by Qatar Sports Investments, a subsidiary of the Qatari government sovereign fund.
La Liga alleges that Qatar’s investment in the club has given PSG an unfair advantage. PSG uses Qatar’s “foreign subsidies to sign top players and coaches well above its potential in a normal market situation,” the complaint alleges.
“This enables them to boost their sporting performance, as well as affecting the ability of rival clubs to recruit,” according to the statement.
La Liga added that it trusts the European Commission’s action to address the alleged market distortions, which it said “seriously damage the sporting ecosystem.”