La Liga takes on Gulf states’ business model: A clash of footballing cultures

Europe Spain’s La Liga challenges Gulf states’ business model

Saudi Arabia’s recent acquisition of sports clubs and investments in European football clubs, alongside Qatar and the United Arab Emirates, has the potential to reshape the world of football. However, the business model championed by Crown Prince Mohammed bin Salman and other Gulf rulers may face challenges from Spain’s top soccer league, La Liga. La Liga has filed a complaint with the European Commission, alleging that Qatari state aid to Qatar-owned Paris Saint-Germain (PSG) distorts European Union markets by paying above-market sums for top players. La Liga President Javier Tebas has cited the example of the multi-million dollar transfers of Brazilian player Neymar and Kylian Mbappé, and asserts that this financial advantage allows these clubs to boost their sporting performance and hinder the ability of rival clubs to recruit.

Challenging the Gulf States’ Business Model

La Liga’s complaint represents a direct challenge to the business model employed by Gulf states in their approach to football club ownership. Saudi Arabia’s Public Investment Fund (PIF), for example, owns Newcastle United, while Abu Dhabi United Group for Development and Investment (ADUG) owns Manchester City. The human rights groups ALQST for Human Rights, Emirates Detainees Advocacy Centre (EDAC), European Saudi Organization for Human Rights (ESOHR), Gulf Centre for Human Rights (GCHR), and International Campaign for Freedom in the United Arab Emirates (ICFUAE) have called on the English Premier League and the British government to prohibit state-aligned owners or owners associated with human rights violations from controlling English football clubs.

Newcastle United, owned by the Saudi Arabian PIF, is particularly vulnerable to scrutiny. The Premier League has stated that it has received “legally binding assurances” that Saudi Arabia will not control Newcastle United, but a California court filing has cast doubt on this, classifying the PIF as a “sovereign instrumentality of the Kingdom of Saudi Arabia.” The filing also noted that Yasir al-Rumayyan, the governor of the PIF and chairman of Newcastle United, is “a sitting minister of the Saudi government.”

The Role of FIFA and the Premier League

Jurgen Klopp, manager of English club Liverpool, has called on FIFA to ensure that countries like Saudi Arabia abide by transfer window rules to maintain a level playing field. However, FIFA’s potential revenue boost from the overhauled Club World Cup in 2025 could make them reluctant to take action against Saudi clubs. The Premier League, on the other hand, has a transfer window that closes earlier than the Saudi window, which gives Saudi Arabian clubs an advantage in recruiting players from English clubs.

If La Liga’s complaint is successful, it could increase pressure on the Premier League and the British government to take similar action against Saudi-owned Newcastle United and UAE-owned Manchester City. It also raises questions about the future of Gulf state ownership of football clubs and the potential impact on the balance of power in European and world football.

Editorial: Balancing Competition and Fairness in Football

La Liga’s complaint against Qatar-owned PSG raises important questions about fairness and competition in football. The ability of clubs to spend large sums of money on players has created a power imbalance in the sport, with wealthier clubs able to attract and retain top talent, while smaller clubs struggle to compete. This has implications for the quality and competitiveness of the leagues, as well as the financial sustainability of clubs.

While it is understandable that clubs want to invest in top talent in order to succeed on the field and attract fans, measures need to be taken to ensure that this does not lead to unfair competition. Financial fair play regulations, which aim to prevent clubs from spending beyond their means, have been introduced by governing bodies such as UEFA, but more needs to be done to level the playing field.

Advice: Striking a Balance

In order to strike a balance between competition and fairness, football governing bodies should consider implementing stricter regulations on club ownership, particularly in cases where there are concerns about the influence of state actors or human rights abuses. This would help to prevent clubs from becoming vehicles for political or social power and ensure that the focus remains on the sport itself.

Additionally, governing bodies should continue to enforce financial fair play regulations and explore other measures to promote financial sustainability and prevent clubs from accumulating excessive debt. This could include implementing stricter regulations on transfer spending and wages, and encouraging clubs to invest in grassroots development and youth academies to promote long-term sustainability.

In summary, the challenges that La Liga has raised against Gulf state-owned clubs highlight the need for greater regulation and oversight in football to ensure fairness and competition. By implementing stricter regulations on club ownership and enforcing financial fair play, governing bodies can help to level the playing field and protect the integrity of the sport.