La Liga files complaint against PSG and Manchester City due to THIS reason

Spanish top-flight La Liga has filed a complaint against Premier League club Manchester City and Ligue 1 club Paris Saint-Germain (PSG) to UEFA over Financial Fair Play violations, the Spanish league announced on Wednesday (June 15).

The organisation said it would take "further legal action to the European Union, France and Switzerland" justice systems as it understands that "these clubs are continually breaching the current regulations" of financial fair play.

La Liga said it lodged the complaint against Manchester City to UEFA in April before filing the one against PSG last week. The Spanish league also said it was "contemplating expanding that complaint" against City due to "new data" that has come to light. Although the statement did not give any specific details, the English champions signed Norway striker Erling Haaland from Borussia Dortmund on a contract that reportedly could cost them over 300 million euros ($313 million), including his salary, agent fees and bonuses.

PSG say they "won't dignify" LaLiga's FFP complaint with a response. Club believe they covered their position in late May when responding directly to Javier Tebas. Club sources maintain the Mbappe deal complies with FFP, "makes financial sense" and argue Real offered more. pic.twitter.com/5tdjpGXA0A — Ben Jacobs (@JacobsBen) June 15, 2022

La Liga president Javier Tebas said last month the organisation would take legal action against the French club after Kylian Mbappe snubbed a move to Real Madrid at the 11th hour and renewed his contract with PSG until 2025.

La Liga reacted angrily to Mbappe's contract extension, saying PSG`s new offer to Mbappe "attacks the economic stability" of European football.

"It is scandalous that a club like PSG, which last season reported losses of more than 220 million euros ($232.32 million) after accumulating losses of more than 700 million euros in prior seasons ... with a squad cost around 650 million for this season, can close such an agreement," LaLiga said at the time.

After months of negotiations with Real Madrid, France international Mbappe ended up staying with the Ligue 1 champions for a reported annual salary of 50 million euros until 2025. This is not the first time that LaLiga has filed complaints against "state owned clubs" PSG and Manchester City.

PSG is owned by the state-run Qatar Sports Investments, while City is under Abu Dhabi ownership. In 2017 and 2018, it had also filed complaints against the two clubs over breach of financial fair play rules, leading to sanctions by UEFA. However, City and PSG lodged appeals with the Court of Arbitration for Sport (CAS), who ruled in the two clubs` favour, a decision the Spanish league called "strange”.

La Liga also announced it was "studying different legal options in Switzerland" against PSG president Nasser Al-Khelaifi for "possible conflicts of interest" derived from his different roles running the French club, and his different roles in UEFA, European Club Association (ECA) and BeIN Sports.

With Reuters input