Skip to content

Real Madrid, Barcelona under investigation from EU

Dec 18, 2013, 10:35 AM EST

Real Madrid v Manchester United - UEFA Champions League Round of 16 Getty Images

Turns out the two richest teams in Spain may be in very big trouble.

Real Madrid and Barcelona top the list of seven Spanish teams under investigation by the European Union (EU) over irregular public funding, as the European Commission starts a lengthy process to put the top Spanish clubs under the spotlight.

Osasuna, Athletic Bilbao, Valencia, Elche and second-tier Hercules are the other sides in question, as Madrid, Barca, Athletic Bilbao and Osasuna are accused of a corporate tax advantage of 5%.

One of the most severe allegations is against Real, who are said to have sold training ground land to the City of Madrid at an over-inflated price of 22.7m euros. ($31.9 million) While Valencia-based clubs Valencia, Hercules and Elche have apparently been handed up to $104 million in state-backed loans.

The clubs, if found guilty, would have to pay the vast sums of money back to the Spanish government.

However, Spain’s foreign minister Jose Manuel Garcia Margallo denied the clubs had broken EU rules. “The government will fight to defend Spanish clubs because they’re also part of the Spanish brand.”

While all this is happening under the looming cloud of Financial Fair Play coming into force in European soccer. FFP lurking in the background has made these allegations all the more harmful as it looks as though Spanish teams are trying to get their houses in order before strict financial regulations hit them hard. Under new rules large amounts of spending beyond their means and taking out loans will be limited as teams are encouraged to only spend the money the generate from endorsements, ticket sales and prize money.

Clearly the big boys in Spain can’t keep snapping up the biggest names in world soccer with only limited revenue streams to rely on.

The European Commission is in charge of the proceedings and its likely to take months to decipher whether or not the clubs acted incorrectly. But let’s break down one particular area, Madrid’s land by their training ground which they sold to the state.

According to a statement from the commission:

“Real Madrid appears to have benefited from a very advantageous real property swap with the City of Madrid. This swap was based on a re-evaluation of a plot of land at a value of 22.7m euros, instead of its earlier supposed value in 1998 of 595,000 euros.”

When City officials, businessman and soccer clubs are all involved, things like this happen quite a lot. But the sheer discrepancy in the value of that land is mind boggling.

It seems as though Spanish soccer is going to be under the spotlight and scrutinized for many months ahead.

Latest Posts
  1. Hope Solo could be left off USWNT’s 2015 World Cup team, says Sunil Gulati

    Jan 26, 2015, 9:45 PM EST

    Hope Solo, USWNT Hope Solo, USWNT

    Hope Solo’s punishment for repeated alcohol-related incidents could extend much further than her initial 30-day suspension.

  2. Real Salt Lake’s Joao Plata to undergo surgery on broken foot, miss start of season

    Jan 26, 2015, 8:22 PM EST

    Joao Plata, Real Salt Lake Joao Plata, Real Salt Lake

    3-4 months on the sidelines means a massive hole to fill to start the 2015 season.

  3. Africa Cup of Nations roundup: Tunisia, DR Congo draw in group finale, advance to QF

    Jan 26, 2015, 7:10 PM EST

    Ahmed Akaichi, Tunisia Ahmed Akaichi, Tunisia

    After two more places in the knockout rounds were booked on Tuesday, half the quarterfinal matchups are set.

  4. Chile vs. USA preview: Who’s here to stay as USMNT kicks off 2015?

    Jan 26, 2015, 6:15 PM EST

    Jurgen Klinsmann, USMNT Jurgen Klinsmann, USMNT

    Half the current USMNT roster was built with the Gold Cup in mind, while the other half is about next year’s Olympics. So, who’s who, then?

  5. Report: Juan Agudelo close to signing with his former MLS team, New England Revolution

    Jan 26, 2015, 4:05 PM EST

    Juan Agudelo, FC Utrecht Juan Agudelo, FC Utrecht

    After eight months without a club, Juan Agudelo is reportedly returning to the place he should have been all along: MLS.

  6. VIDEO: Legendary Argentine playmaker Juan Roman Riquelme retires

    Jan 26, 2015, 2:59 PM EST

    Juan Roman Riquelme Juan Roman Riquelme

    As the soccer world will no longer see the maverick skills of the Argentine playmaker, here’s a look at some of his best moments.

  7. FA Cup fifth-round draw: Arsenal vs. Middlesbrough, Midlands derby, minnows at home

    Jan 26, 2015, 2:38 PM EST

    Here’s the draw for the last 16 of the FA Cup, as PL big boys get more tough tests.

  8. Head of Dutch FA, Michael van Praag, will challenge Blatter for FIFA presidency

    Jan 26, 2015, 1:57 PM EST

    UEFA Europa League Handover In Amsterdam Getty Images

    Van Praag announces his intentions to run against Blatter, says he has the backing of five federations.

  9. Drinks on her! Lady wins $24,000 after $3 bet predicted huge FA Cup upsets

    Jan 26, 2015, 1:00 PM EST

    Hartlepool United v Blyth Spartans - FA Cup Second Round Getty Images

    Betting on five underdogs away from home in the FA Cup will win you serious cash.

  10. Diego Fagundez says he was “tired of waiting for the U.S.” after choosing to play for Uruguay

    Jan 26, 2015, 12:32 PM EST

    FBL-U20-SOUTHAM-URU-COL FBL-U20-SOUTHAM-URU-COL

    Fagundez explains why he couldn’t wait any longer to select his national team.

  11. Chelsea’s Andre Schurrle rumored to want Wolfsburg move. Should he move on?

    Jan 26, 2015, 12:00 PM EST

    Swansea City v Chelsea - Premier League Getty Images

    If Wolfsburg can agree a fee for Schurrle, should he leave Stamford Bridge?

  12. Transfer ban for Real Madrid? Probe launched after signing of Venezuelan kids

    Jan 26, 2015, 9:20 AM EST

    Official logo of the spanish football team, Real Madrid. Official logo of the spanish football team, Real Madrid.

    The signing of two Venezuelan youngsters could put Real in plenty of trouble with FIFA, as Barcelona-esque transfer ban could be on the cards.

  13. VIDEO: South Korea beat Iraq to reach first Asian Cup final since 1998

    Jan 26, 2015, 8:34 AM EST

    FBL-ASIA2015-KOR-IRQ FBL-ASIA2015-KOR-IRQ

    The Koreans will face either Australia or the UAE in Saturday’s final in Sydney.

  14. City’s Pellegrini concerned at home form after Arsenal, Middlesbrough losses

    Jan 25, 2015, 11:33 PM EST

    Britain Soccer FA Cup AP

    “I am concerned, not because of Chelsea but because we didn’t score in our last two home games,” Pellegrini said.

  15. Eto’o passes physical at Sampdoria, move from Everton all but official

    Jan 25, 2015, 10:50 PM EST

    twitter.com/sampdoria twitter.com/sampdoria

    The 33-year-old Cameroonian striker joins a Sampdoria side currently tied for third in the table with 34 points.

  16. Rodgers: Sturridge could face Chelsea in League Cup, certain to be back for Saturday vs. West Ham

    Jan 25, 2015, 10:13 PM EST

    Liverpool FC Training Session Getty Images

    “If he’s not ready for Tuesday then he’ll be back, for sure, against West Ham next weekend,” Rodgers said.

  17. Scotland, Wigan mid joins Chicago Fire as third Designated Player

    Jan 25, 2015, 9:22 PM EST

    twitter.com/chicagofire twitter.com/chicagofire

    Maloney turned 32 on Saturday and will be unveiled by Chicago on Monday.

Featured video

Top five Premier League goals: Week 22