Monaco tax ruling challenged by PSG, Marseille

A group of Ligue 1 clubs including Paris Saint-Germain are taking legal action against a decision to allow Monaco to operate tax-free.

A dispute between Monaco and French football’s governing body, the LFP, was resolved last month after the club had initially refused to pay money in relation to national tax laws because they are based in the Monegasque principality.

The cash-rich club ultimately agreed a deal with the LFP that will see them pay a voluntary lump-sum of €50million to continue playing within Monaco and in the top flight.

However, a number of France’s top clubs have been angered by the decision, and have now opted to pursue legal action in order to abolish the agreement.

A statement released on Bordeaux’s official website read: “The LFP decided, following a meeting of its board of directors on January 23, 2014, to conclude a transaction with AS Monaco in order to put a definitive end to the dispute between the club and the League concerning the headquarters of the AS Monaco.

“Under the terms of this agreement, the LFP has agreed that AS Monaco can remain at its headquarters in the principality of Monaco, where it enjoys a favourable tax and social security system, in exchange for the payment of compensation of fifty million euros to be distributed among the professional clubs in ways that have not yet been clarified.

“Surprised by the hasty and barely transparent nature of this agreement, which ignores several substantive principles of law, FC Girondins de Bordeaux, Stade Malherbe Caen, LOSC Lille, FC Lorient, Olympique de Marseille, Montpellier Herault Sport Club and Paris Saint-Germain have decided to launch legal action together in order to cancel the transaction that took place and allow a solution concerned with the interests of all stakeholders and sporting fairness to be found.”

Monaco have launched an assault on the upper echelons of French football since Dmitry Rybolovlev’s takeover in December 2011.

The fertiliser magnate has invested an estimated €170m in the Monaco squad after their promotion to Ligue 1 this season, signing global superstars such as Radamel Falcao, Joao Moutinho and James Rodriguez.

Those additions have launched Monaco into the top-flight title race immediately, though they sit five points behind table-toppers PSG.