Dec 18, 2013, 10:35 AM EDT
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.
Aug 31, 2015, 10:48 PM EDT
Three Premier League sides have some serious work to do on transfer deadline day. Who needs what?
Aug 31, 2015, 9:15 PM EDT
Harry Redknapp was the ultimate star of transfer deadline day. Tuesday will be a sad, empty day without Harry around.
Done Deals: Recapping Man United (and others’) busy day — De Gea drama; Chicharito out; $56 million for Martial
Aug 31, 2015, 7:39 PM EDT
Manchester United were the world’s busiest football club on Monday. They, along with others, made headlines ahead of the transfer deadline.
NO DEAL: David de Gea’s transfer to Real Madrid falls through as Man United paperwork arrives too late
Aug 31, 2015, 6:53 PM EDT
Manchester United failed to submit the necessary paperwork before Spain’s transfer deadline, and De Gea will not move to Real Madrid.
Aug 31, 2015, 4:05 PM EDT
Two goals, one assist in a 3-0 victory over your club’s most hated rivals — more than enough to win POTW honors.
Aug 31, 2015, 3:20 PM EDT
Two Bradleys, two from Crew SC and two from the Dynamo — the latest MLS Team of the Week.
Aug 31, 2015, 2:11 PM EDT
Yes, rumors know no season, but the transfer mill will churn out a lot less gossip after Tuesday’s end of the summer transfer season.
Aug 31, 2015, 1:42 PM EDT
Manchester United and Real Madrid have swapped goalkeepers, with the Premier League side landing a load of dough, too.
Aug 31, 2015, 1:23 PM EDT
The UEFA Champions League clubs don’t find themselves well-represented in the Premier League Team of the Week after a weekend of shocks around Britain.
Aug 31, 2015, 12:32 PM EDT
We’re still waiting to see whether Javier Hernandez seals his move to Bayer Leverkusen. “Chicharito” has been spotted around Bayer HQ.
Aug 31, 2015, 11:23 AM EDT
The Black Panther is doing more than simply prowling; He is finishing his chances with style.
Aug 31, 2015, 11:09 AM EDT
The 2006 World Cup champion will organize Miami FC for co-owner Paolo Maldini during the club’s first season in the NASL.
Aug 31, 2015, 10:51 AM EDT
PST’s Lead Writer and Editor takes an in-depth look back at the PL weekend.
Aug 31, 2015, 10:35 AM EDT
It looks like we’re headed for a bonkers Transfer Deadline Day on Tuesday, and a trio of Premier League teams might be doing some under-the-radar business on Monday.
Aug 31, 2015, 9:33 AM EDT
With the transfer deadline approaching its Tuesday conclusion, deals and rumored deals are hitting the headlines at a head-spinning rate.
Aug 31, 2015, 9:10 AM EDT
This Little Pea went to market, reportedly finding a new home in the Bundesliga (And did he really ask for $135k per goal from West Ham?).
Aug 31, 2015, 8:10 AM EDT
The French federation says Martial was given permission to leave camp by Didier Deschamps, and that he’ll sign a contract with United.
Aug 30, 2015, 9:15 PM EDT
A complete performance from the Red Bulls, who will finish the season unbeaten against their Atlantic Cup rivals.
Aug 30, 2015, 8:05 PM EDT
Find out what moves have been completed with the transfer deadline approaching, as Wolfsburg made three big deals today.
Aug 30, 2015, 7:04 PM EDT
More than 64,000 supporters packed CenturyLink Field as the Sounders downed the Timbers in a Cascadia Cup clash.
- Big Spenders: Which Premier League clubs must go all-in on transfer deadline day? 0
- Done Deals: Recapping Man United (and others’) busy day — De Gea drama; Chicharito out; $56 million for Martial 0
- NO DEAL: David de Gea’s transfer to Real Madrid falls through as Man United paperwork arrives too late 3
- Report: De Gea moving to Madrid as Costa Rican hero Navas heads to Old Trafford 4
- Fireworks as transfer deadline passes in Germany: Draxler to Wolfsburg, Januzaj to Dortmund 2
- Premier League Playback: It’s time to change the Transfer Window rules 3