European Commission to Investigate Seven Top Spanish Clubs for Accepting Illegal State Aid

December 17, 2013

The European Commission has announced it will launch a formal investigation into seven Spanish football clubs, including Barcelona and Real Madrid, on Wednesday after complaints they accepted illegal state aid, Spain’s foreign minister said.

Competition Commissioner Joaquin Almunia announced in April that the complaints concerned Barcelona, Real Madrid, Athletic Bilbao, Osasuna (Pamplona), Valencia, Hercules (Alicante) and Elche.

Foreign Minister Jose Manuel Garcia-Margallo told a press briefing after talks with EU colleagues on Monday the government in Madrid had been informed of a comprehensive inquiry.

It would be the first step to a procedure for violation of EU rules and could lead to sanctions if these rules were in fact broken.

Madrid appeared concerned about the consequences of the Brussels decision and Garcia-Margallo said the government would “defend the clubs to the end”.

“As far as I know there was nothing illegal,” said the minister. “But I am concerned about the prejudice that the clubs may suffer.”

The focus of the investigation is on whether the tax rate imposed on Real Madrid, the FC Barcelona, Athletic Bilbao and Osasuna complies with European law.

Valencia, Elche and Hercules were being investigated because of help the three clubs received from the regional government in the form of loans and bank guarantees.