
Share
5th July 2016
07:31pm BST

"As a result, Spain has to recover the illegal state aid amounts from the seven clubs, namely FC Barcelona, Real Madrid, Valencia, Athletic Bilbao, Atlético Osasuna, Elche and Hercules."One of the instances the European Commission took issue with was the sale of land by Real Madrid to the Madrid City Council, deeming it to be overvalued by €18.8m and have ordered the club to pay the money back. The commission also ruled that Spain had effectively created a tax shelter for Real Madrid, Barcelona, Athletic Bilbao and Osasuna, by allowing them to be classified as non-profit organisations. This enabled them to pay a tax rate five percent lower on profits than those paid by limited liability companies. Real Madrid have said they will appeal the ruling, but they should probably avoid Javier Tebas' line of defence if this is the best argument he can offer. https://twitter.com/dermotmcorrigan/status/750364683954163716 The La Liga president said that the ruling against the clubs' non-profit status was "incredibly silly" because "Irish clubs pay just 12 percent (on profit)," and this "generates unfair competition throughout the EU." According to Tebas, Irish football clubs, that struggle to make any profit at the end of the year, are the real villains in this instance.
Hopefully the European Commission go after Irish clubs and end their dominance of European football, achieved through a low-tax rate, that is forcing the Spanish government to prop up the minnows of La Liga.
https://twitter.com/Marcotti/status/750368211275841536

Explore more on these topics: