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Funding of Certain Spanish Professional Football Clubs comes under State Aid Scrutiny

The European Commission has opened three in-depth investigations to verify whether various public support measures in favour of certain Spanish professional football clubs are in line with EU state aid rules. Real Madrid and Barcelona are among the seven clubs under investigation. None of the measures were notified to the Commission, who was alerted instead by concerned citizens.

The Commission will firstly investigate possible corporation tax privileges for Real Madrid CF, Barcelona CF, Athletic Club Bilbao, and Club Atlético Osasuna. In another inquiry it will assess whether a widely reported land transfer between the City of Madrid and the club Real Madrid CF involved any state aid in favour of the club. Finally, it will examine the compliance with EU state aid rules of guarantees given by the State-owned Valencia Institute of Finance for loans that were used to finance the three Valencia clubs Valencia CF, Hercules CF and Elche CF, while those clubs were seemingly undergoing financial difficulties.

According to the Commission, all these measures were financed through state resources and provide advantages to specific clubs that carry out economic activities in the EU internal market. The measures are therefore likely to affect competition and trade between Member States and appear to involve state aid in the meaning of the EU rules. Such aid can be found compatible when it furthers a common objective without unduly distorting competition in the internal market. At this stage, Spain has not adduced any evidence to this effect.

The opening of an in-depth investigation gives Spain and interested third parties an opportunity to comment on the measures under examination; it does not prejudge its outcome.