LaLiga president Javier Tebas insists Real Madrid's finances are strong.
Tebas says Real Madrid have the money to sign both PSG striker Kylian Mbappe and Borussia Dortmund's Erling Haaland.
"Madrid have sold players for 200 million euros," he said on Monday. "They have money to sign Mbappe and Haaland together.
"They haven't lost money and, on top of that, they have sold well. What's not understandable is that a club (PSG) that loses 400 million has a 500 million wage bill and can reject offers for Mbappe.
"The rules for (financial) control are failing in France, it's doing damage to the European market. The UEFA system is wrong. We have to bring in investment, but not unlimited contributions with constant losses. In other sectors it would not be permitted.
"They prefer to win the Champions League and to have millions of losses. That way they make the fans happy because you win the Champions League, but you've f----d football. It's very dangerous."
On Barcelona, he added: "The important thing is not the debt they have, but their capacity to return it. Their revenue (was) one billion euros. Their ratio is one-to-one, better than 70 percent of the teams in Europe, better than PSG, teams in the Premier League..."
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