Real Madrid to sell Star Players if Indicted in European Financial Scandal
Real Madrid could be forced to sell stars like Cristiano Ronaldo and Gareth Bale if they are found to have received illegal state aid.
Madrid are one of seven Spanish clubs being investigated by the European Commission over allegations that they have banked billions thanks to favourable tax rates, dubious land deals and cheap loan agreements in conjunction with both central and local government. Barcelona, Valencia, Athletic Bilbao, Osasuna, Elche and Hercules are also under investigation.
If any of the any clubs are found to have benefited from a level of state aid that contravenes European regulations, they face repaying the money in full as well as a heavy rate of interest.
A state-aid expert said complaints have been lodged with the European Commission by investors and supporters of several clubs from outside Spain – including Tottenham and Borussia Dortmund.
Real Madrid, in particular, could face major financial problems if it is found that the aid they have been receiving from government has “distorted or threatened to distort competition”. That could have dire consequences if they are ordered to pay back money.
The nine-times European became the first club to earn €500million (£420million) in annual revenue, But it is reported that they have debts of £500million in Spain.
Real are also being investigated over a land deal which saw them buy a parcel of land off the Madrid council for less than £350,000, which was later sold back to the municipality for almost £20million.
Emily O’Reilly, the European ombudsman, warned during the week that, according to the complaints received, the advantages gained by Spanish clubs amounted to several billion euros.
If the complaint is upheld by the investigation, that cash – and heavy interest – becomes repayable immediately without any requirement for the European Commission to take the individual clubs to court.
The Spanish government has promised to fight the allegations and has said that they will resist any attempt by the European Commission to make the clubs pay.
But that would also be contrary to European law and there is growing anger in Brussels that the Spanish government has been granting tax exemptions to football clubs at a time when they have been asking for money from the EC to ease the country’s financial crisis.
Although Barcelona – along with Real, Valencia, Athletic Bilbao and Osasuna – have benefited from favourable tax rates after being granted special status by the Spanish government, If the complaint is proven, Barcelona are not believed to be facing the kind of financial problems which are likely to befall their bitter rivals from the capital.
