Official: La Liga complains to EU Paris accepts Qatar supplement
Live broadcast on August 13 news La Liga officially announced that La Liga had complained to the European Commission about Paris, believing that Qatar’s funding for Paris made Paris obtain resources that could not be obtained in the normal market, top players and coaches can be signed, which has seriously disturbed the European football market. Given that the “foreign subsidy regulations” promulgated by the European Union came into effect last month, La Liga believes that the regulations can regulate Qatar investment obtained in Paris.
The full text of La Liga announcement is as follows ↓
The implementation of “regulations on foreign government subsidies that distort the internal market of EU” (that is, foreign subsidies regulations) has brought new policy orientation. Therefore, la Liga has complained to the European Commission about the financing mechanism of Paris Saint Germain football club. The financing mechanism in Paris has seriously distorted the internal market of the EU.
The above regulations will apply from July 12, 2023and will regulate foreign subsidies provided by non-EU companies that carry out economic activities in the internal market of the EU. These subsidies include subsidies provided by listed companies directly or indirectly controlled by state capital, and subsidies provided in the five years before the implementation of the regulations are also within the scope of supervision.
Based on this regulation, La Liga filed a lawsuit accusing Paris Saint Germain football club of accepting foreign subsidies provided by Qatar. The subsidies provided by Qatar enabled Paris to improve its competitive position, which seriously disrupted the markets within many countries and the EU.
Specifically, as stated in the complaint, Paris Saint Germain gained resources under non-market conditions, enabling Paris to sign top players and coaches with these foreign subsidies, it is far more than its ability in the normal market, which disturbs the market closely related to it. Paris can also obtain sponsorship income that is inconsistent with its market value, which enables them to improve their competitive performance and influence the recruitment ability of rival clubs.
The improvement of competitive status enables Paris to improve its competitive position in the market related to sports competitions (such as the competition audio-visual marketing market or sponsorship market), thus artificially improving the club’s value in the above markets.
Therefore, La Liga believes that the European Commission will use this new regulatory tool to take necessary measures to eliminate the above-mentioned problems that disturb the market, which have seriously damaged the sports ecosystem.
(Angie)