The French football authorities have ordered Ligue 1 club AS Monaco, owned by Russian billionaire Dmitry Rybolovlev, to relocate to France from the tax haven in order to end its financial advantage over competitors, reports BBC News.
For years France has been considered the weakest of the so-called Big Five football leagues in Europe - a quintet which also includes England, Germany, Spain and Italy.
However, the past couple of seasons have seen exciting developments with clubs Paris Saint-Germain and AS Monaco being bought by wealthy overseas owners.
Both the Qatar Investment Authority in Paris and Dmitry Rybolovlev at Monaco have international ambitions for their clubs, and their big-name international signings have raised the profile and glamour stakes of the domestic Ligue 1.
Despite this, a huge row is now brewing in French football over the tax advantages enjoyed by newly-wealthy AS Monaco.
Being based in the tax haven of Monte Carlo, they are able to offer overseas stars - such as Colombian striker Falcao, a £51m summer signing from Atletico Madrid - massive tax-free salaries, something their 19 French-based league rivals are unable to do.
"The advantage is huge in being able to convince huge players like Falcao to move to the club," says French journalist Cyrille Haddouche of Le Figaro newspaper, who has been watching events closely.
He points out that while these tax rules have always been in place, what is different now is that their effects are being multiplied by "the huge wealth of the Russian owner".
It means rival clubs - historical and successful names such as Lyon, Lille, Marseille and Saint-Etienne - are unable to financially compete with AS Monaco, either with billionaire Mr Rybolovlev's deep pockets, or their tax advantages.
"So the tax advantage that Monaco has is considered as unfair [by the clubs], especially in a period of economic difficulties for all clubs except Paris Saint-Germain," says Mr Haddouche.
"For example, former winners of the league, Lyon and Lille, must now sell players in order to reach break even."
The resentment felt by other clubs comes against the backdrop of the prospect of the introduction of a 75% tax rate on individual annual incomes in France exceeding 1m euros (£860,000), including those of footballers.
The proposal was a central part of President Francois Hollande's election campaign, and although initially scuppered by the courts, the policy may be reintroduced in a different form.
The president of the Ligue de Football Professionnel (LFP), Frederic Thiriez, has been fighting the 75% proposal, but has also said that something needs to be done about AS Monaco's tax advantage.
He said unless the rules changed then the newly-promoted club would have a 50m euros (£43m) a season advantage over other clubs.
To end this state of affairs, the French league has told AS Monaco they must relocate their headquarters, and hence tax base, to France by June 2014.
Read more of this reprot from BBC News.