Spanish football clubs found in breach of state aid rules

by Matthew Campelli | 05 Jul 2016

A number of football clubs in Spain – including Barcelona and Real Madrid – will have to pay back millions of euros to their respective governments after breaking state aid rules.

Following “in-depth” investigations, the European Commission found that clubs had accumulated millions in government subsidies and paid less than the required amount of tax over a number of years.

As a result, both countries have been told to recover the funds from the football clubs, which also include Athletic Bilbao, Valencia, Atletico Osasuna, Elche and Hercules in Spain.

The Commission found that Real Madrid, Barcelona, Athletic Bilbao and Osasuna have been allowed to enjoy preferential corporate tax rates of 25 per cent rather than the 30 per cent applicable to sport limited companies since 1990. The shortfall will need to be paid back to the Spanish authorities by each club.

A land transfer transaction between Real Madrid and the City of Madrid was also scrutinised, which found that the land was overvalued by €18.4m (£15.6m, US$20.5m), giving the football club an “unjustified advantage over other clubs”. The money now needs to be paid back.

In addition, the Commission investigated guarantees given by the state-owned Valencia Institute of Finance for the loans of three football clubs – Valencia, Hercules and Elche. The Commission has concluded that the loans were provided on “more favourable terms” and unfair to non-subsided clubs. Valencia, Hercules and Elche will have to pay back €20.4m (£17.3m, US$22.7m), €6.1m (£5.2m, US$6.8m) and €3.7m (£3.1m, US$4.1m) respectively.

“Using taxpayers’ money to finance professional football clubs can create unfair competition,” said competition policy commissioner Margrethe Vestager.

“Professional football is a commercial activity with significant money involved and public money must comply with fair competition rules. The subsidies we investigated in these cases did not.”

Barcelona  Real Madrid  Valencia  spain  football  European Commission 
Related stories
21 Apr 2016

FC Barcelona unveils Nikken Sekkei's 'sentimental' design for New Camp Nou

18 Mar 2016

EXCLUSIVE: Lead architect on FC Barcelona's Palau Blaugrana project reveals details of mixed-use project and how sports design is changing

17 Dec 2015

Real Madrid stadium plans blocked by city council

13 Nov 2015

Real Madrid unveils Tetris-like design for new HQ

22 Jan 2015

Real Madrid still king of football revenue, beats Man Utd to second

A number of football clubs in Spain – including Barcelona and Real Madrid – will have to pay back millions of euros to their respective governments after breaking state aid rules. Following “in-depth” investigations, the European Commission found that clubs had accumulated millions in government subsidies and paid less than the required amount of tax over a number of years. As a result, both countries have been told to recover
SAR
Real Madrid – which plays at the Santiago Bernabeu – was one of the clubs implicated in the cases / Yuri Turkov/Shutterstock.com
More news
News stories: 1 - 30 of 8035     
 
 
 
News stories: 1 - 30 of 8035     
 
 
 
company profile
Company profile: Polin Waterparks
Design, engineering, manufacturing, installation of waterslides, waterparks and waterplay attractions. Polin has perfected hundreds of exclusive and successful projects all around the world: outdoor parks, indoor parks and hotel/resort packages, regardless of the project’s size.
Try cladmag for free!
Sign up with CLAD to receive our regular ezine, instant news alerts, free digital subscriptions to CLADweek, CLADmag and CLADbook and to request a free sample of the next issue of CLADmag.
sign up
Catalogue Gallery
Click on a catalogue to view it online
To advertise in our catalogue gallery: call +44(0)1462 431385
features
The space was conceived as a new type of place for ‘being with art’
Indigenous House at the University of Toronto is a welcoming, inclusive space
"In Indigenous culture, it’s more important to understand where you come from than what you do for a living"

The Vancouver Art Gallery architect tells us about his mission to bring together Western knowledge and Indigenous ways of knowing

cladkit product news
OpenSeed launches private multisensory Iris Meditation Pod
The Iris Pod features vibro-acoustic technology, aromatherapy, light therapy, music, guided meditations and soundscapes
Helen Andrews
OpenSeed has launched its multisensory Iris Meditation Pod, designed in collaboration with Fuseproject – a design and innovation company founded ...
Porada launch retro-inspired coffee table
Porada's new Enook Brillo coffee table
Magali Robathan
Maurizio Marconato and Terry Zappa have created the Enook Brillo coffee table for Italian design studio Porada – a retro-inspired design ...
Effe introduces sauna and hammam collection Baluar by Patricia Urquiola
The system uses heat-treated lime wood cladding, available in either a dark or light tone
Helen Andrews
Sauna specialist Effe (formerly Effegibi) has introduced its new sauna and hammam collection, Baluar, designed by architect and designer Patricia ...
cladkit product news
New Balera collection embeds lighting in 
tiled feature walls
Studiotamat has teamed up with Ariana de Luca to create the Balera range
Magali Robathan
The new Balera Collection sees design studio Studiotamat team up with ceramic artist Arianna De Luca and lighting designer Ninefifty ...
TouchWood Play designs new kids’ club for Dubai’s Zuhha Island
The new club aims to connect children with nature
Magali Robathan
Bespoke play environment design and manufacturer TouchWood Play has announced that it is responsible for the creation of a new Kids’ ...
Snow’s holistic cool-down: Embracing inclusivity in post-sauna rituals
Megan Whitby
In the world of wellness, the age-old tradition of sauna bathing is synonymous with relaxation, detoxification and rejuvenation. But, a ...
cladkit product news
Heatherwick Studio and lighting brand Tala collaborate to create sleep light called Wake
Wake is crafted from hand-spun ceramic and pressed glass, behind which a gentle light emanates to improve sleep routines and wellbeing
Helen Andrews
Design firm Heatherwick Studio and British lighting brand Tala have teamed up to create a sleep light called Wake. The ...
Lucas Zito aims to show 3D printed lamps can be timeless design objects
Lucas Zito’s practice specialises in the design of lights through 3D printing
Magali Robathan
A collection of lighting from Paris-based designer Lucas Zito aims to reframe the idea of 3D printed objects as cheap ...
LivinGlobe introduces redesigned adaptable Vidarium
LivinGlobe can install ultra short throw projections or premium LED panels, as well as the surround sound system and video server
Helen Andrews
Founded more than 10 years ago, LivinGlobe was one of the first companies in the immersive wellness space with its ...
x
Sign up with CLAD for regular news updates