Barcelona and Real Madrid suffered another financial blow, with Clasico rivals among those told they would be stung with a bill of up to € 5million (£ 4million / $ 6million) in as part of a fight against the European Union. against tax evasion.
Athletic Club and Osasuna have also been informed that they will have back taxes to pay.
The clubs in question, led by Barca, challenged an initial ruling that questioned the use of a 25% tax rate instead of the standard 30% rate for sports companies, but the end result did not did not turn out in their favor.
What was said?
The Luxembourg-based Court of Justice of the European Union (CJEU) said in its report: “The aid scheme in question was, from its adoption, likely to favor clubs operating as entities with a goal of non-profit compared to clubs operating in the form of sporting limited companies, thus giving them an advantage which may fall within the scope of Article 107 (1) TFEU. “
Why were Barcelona and Real Madrid paying less tax?
Spain’s major teams had enjoyed a lower tax rate than a number of rivals for more than 20 years as they were treated as non-profit organizations rather than professional limited liability football clubs.
Who challenged them?
The European Commission ruled in 2016 that the four teams in question had received an unfair advantage by occupying a lower tax bracket than other sports institutions.
Barcelona appealed this appeal and forced the General Court to overturn it in 2019 on the grounds that the EU’s competition watchdog had not been able to prove to the legal standards required that a benefit had been obtained.
The committee then took its case to the CJEU with the aim of proving that economic benefits had been withdrawn by Barca, Real and Co.
The big picture
It has already been revealed in 2021 that Barcelona are struggling under the weight of debts totaling 1.2 billion euros (1.1 billion pounds / 1.5 billion dollars).
The real one and many other sides of the world have also been hit hard by the financial implications of an ongoing coronavirus pandemic.
However, it is hoped that the supporters will soon be released to return to the stadiums and help strengthen the coffers of the most prestigious sports superpowers.