Skip to content

Real Madrid, Barcelona under investigation from EU

Dec 18, 2013, 10:35 AM EDT

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. CCL: Two goals from Toni push Sporting Kansas City past Saprissa

    Sep 18, 2014, 11:32 PM EDT

    Sporting Kansas City logo

    Sporting took a big step toward getting out of Group 2 thanks to its Spanish winger.

  2. Sloppy USWNT 4-0 win over Mexico adds fuel to turf conversation fire

    Sep 18, 2014, 10:50 PM EDT

    photo (1)

    Awkward bounces made a disorganized El Tri look awful and the high-powered USWNT look pedestrian in a 4-0 decision on Thursday night.

  3. MLS’s new logo: Reddit (yes, Reddit) may have a way to solve the league’s new problem

    Sep 18, 2014, 9:22 PM EDT

    MLS_crest_club_colors

    Users decided to make the new art’s white space into a plus, ditching the high brow concept in favor of more appealing products.

  4. MLS Preview: Real Salt Lake vs. Colorado Rapids

    Sep 18, 2014, 8:20 PM EDT

    Portland Timbers v Real Salt Lake Getty Images

    NBCSN’s first of three weekend broadcasts takes place tomorrow night at Rio Tinto Stadium.

  5. FA chairman: England “might well bid for” Euro 2028

    Sep 18, 2014, 7:41 PM EDT

    greg_dyke Getty Images

    It’s 14 years off, but The FA is still planning to make a push.

  6. Europe League roundup: Everton big winners at home; Spurs left with draw on the road

    Sep 18, 2014, 6:15 PM EDT

    seamus_coleman AP

    Roberto Martinez makes an impressive European debut, while Mauricio Pochettino sees him team go without a shot on target.

  7. It’s not too late for Major League Soccer to turn away from its new logo

    Sep 18, 2014, 4:25 PM EDT

    don_garber_mls_logo AP

    MLS has admitted failure before. Today’s new art may prove to be another idea the league should cast off.

  8. Premier League Power Rankings: Red Devils and Villans on the up

    Sep 18, 2014, 3:09 PM EDT

    Manchester United v Queens Park Rangers - Premier League Getty Images

    With Week four in the books, here’s how the PL teams stack up in our rankings of power.

  9. Reactions to “MLS Next” as North America’s top-flight launches rebrand

    Sep 18, 2014, 2:27 PM EDT

    MLS_crest_club_colors

    What are people saying about Major League Soccer’s new look?

  10. Arsene Wenger’s biggest regret is missing out on Cristiano Ronaldo

    Sep 18, 2014, 1:45 PM EDT

    Everton v Arsenal - Premier League Getty Images

    Wenger: “I was so close to signing Cristiano Ronaldo.”

  11. Auf Wiedersehen! Felix Magath out as Fulham boss after terrible tenure

    Sep 18, 2014, 1:09 PM EDT

    STOKE ON TRENT, ENGLAND - MAY 03: Fulham manager Felix Magath reacts as his side are relegated following their defeat in the Barclays Premier League match between Stoke City and Fulham at the Britannia Stadium on May 3, 2014 in Stoke on Trent, England. Getty Images

    After just four wins from 20 games, Fulham’s owner has seen enough from Magath.

  12. Brendan Rodgers on Liverpool’s growing pains: “There’s no magic formula”

    Sep 18, 2014, 12:37 PM EDT

    There's nothing nice about watching your side squander a three goal lead to end up with a draw. Getty Images

    Rodgers’ side have had an up and down start to the season. Is it the sign of things to come?

  13. Europa League preview: Will Everton, Tottenham reach knockout stages?

    Sep 18, 2014, 11:33 AM EDT

    tim_howard Getty Images

    Here’s what lies in store for Everton and Tottenham as Thursday night soccer begins.

  14. Taking back time: FIFA says officials must return expensive watches

    Sep 18, 2014, 11:00 AM EDT

    Brazil v Germany: Semi Final - 2014 FIFA World Cup Brazil Getty Images

    Parmigiani watches worth over $25,000 dished out by Brazilian federation to FIFA’s exec. members must be returned.

  15. Arsenal linked with three free agents, as defensive woes continue

    Sep 18, 2014, 10:18 AM EDT

    FC Lokomotiv Moscow v FC Zenit St. Petersburg - Premier League Getty Images

    Gunners need reinforcements in defense, so who are they making a move for?

  16. Ole Gunnar is gone: Solksjaer out as Cardiff City manager

    Sep 18, 2014, 9:35 AM EDT

    Blackburn Rovers v Cardiff City - Sky Bet Championship Getty Images

    Norwegian boss let go after just 9 wins in 30 games in charge of the Bluebirds.

  17. Chelsea have Diego Costa injury concern

    Sep 18, 2014, 8:56 AM EDT

    Chelsea FC v FC Schalke 04 - UEFA Champions League Getty Images

    Star striker struggling with persistent hamstring problem ahead of Manchester City clash.

  18. PHOTO: MLS unveils new logo. What do you think?

    Sep 18, 2014, 8:19 AM EDT

    MLSLogoEdit1

    What do you guys think of the brand new MLS logo?

  19. US move up one place in latest FIFA rankings; Wales the big winners

    Sep 18, 2014, 7:40 AM EDT

    Michael Orozco, Mix Diskerud, Matej vydra AP

    Klinsmann’s men move up after Czech Republic win. See where they’re ranked in the top 20.

  20. Fire-ravaged dog home claims Mario Balotelli made sizable donation

    Sep 17, 2014, 11:30 PM EDT

    Balo

    A dog home ravaged by fire last week believes Mario Balotelli has made a sizable donation.

Featured video

Breaking down Man City vs. Chelsea