Barcelona and Real Madrid Face Removal of Privileges According to Reports

The European Commission (EC) could relinquish Real Madrid’s and Barcelona’s privileged status as member-owned clubs according to a report in the Independent.

The move would increase the likelihood of the clubs becoming plcs, symptoms which could potentially ruin their dominance of Spanish football.

Being exempt from becoming plcs has allowed the two clubs, as well as Athletic Bilbao and Osasuna, to enjoy significant tax breaks and not-for-profit status.

It was in 1990 that the Spanish government ruled that all clubs apart from the four mentioned, were obliged to become limited companies.

For the past four years the EC competition office has been investigating allegations of illegal state aid from both clubs, which relates to their limited status.

This is the second EC investigation Madrid has found itself under, after a land deal with Madrid city council was criticised as illegal state aid.