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La Liga aim to pursue legal action against PSG after Kylian Mbappe’s contract extension

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La Liga has confirmed that they are set to take legal action against Paris-Saint Germain after the French club agreed terms with Kylian Mbappe on a new three-year contract as the Frenchman snubbed a move to Real Madrid. Mbappe was widely expected to join Madrid upon the expiry of his contract.

Kylian Mbappe was the center of transfer scrutiny last summer as Real Madrid made multiple high-profile bids to sign the striker from the French club. The World Cup winner had outlined his intentions of joining the Spanish side after the close of the summer transfer window. That was especially since the Frenchman’s contract set to expire this summer and he had been widely expected to join Madrid on a free transfer at the end of his contract but decided to snub a move in favour of signing a new three-year contract with PSG.

It has been reported that the French club have made Mbappe their highest-paid player after tying him to a new deal with his remuneration dwarfing the likes of Lionel Messi's and Neymar's.  Mbappe is also allegedly set to receive a signing bonus of over €100 million from club president Nasser Al-Khelaifi. La Liga released a statement confirming that the league would file a complaint to UEFA over an alleged breach of finance rules.

"LaLiga will file a complaint against PSG before UEFA, the French administrative and fiscal authorities and European Union authorities to continue to defend the economic ecosystem of European football and its sustainability," the statement read.

"This type of agreement attacks the economic stability of European football, putting at risk hundreds of thousands of jobs and the integrity of the sport," it continued. "It is scandalous that a club like PSG ... can close such an agreement while those clubs that could afford the hiring of the player without seeing their wage bill compromised are left without being able to sign him. ... PSG is assuming an impossible investment, seeing that it has an unacceptable wage bill and large financial losses in prior seasons. It is violating current UEFA and French economic control rules."

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