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Spanish clubs hit.


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Announced on the Euronews channel this morning.

For the last 20 years the Spanish government has given tax breaks to Real Madrid, Barcelona and two other clubs.

The European Court of Justice, (highest court in the EU), has ruled that is illegal and must stop. Also, the clubs must now pay back  to the Spanish treasury all 20 years worth of tax break money! 🙂

 

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Wasn't there a previous scandal regarding Real Madrid conveniently selling their training ground (?) to the actual government years ago when they were massively in debt? 

 

Edit - link here 

https://www.theversed.com/32754/real-madrids-success-was-expensed-by-the-spanish-government/#.XqmtVmwZLr

Edited by CyderInACan
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Whoops!

So with Barca already sitting on a billion euros worth of debt and had a few of their officials having been arrested last week over financial “issues” , this must do them the world of good.

 

 

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59 minutes ago, CyderInACan said:

Wasn't there a previous scandal regarding Real Madrid conveniently selling their training ground (?) to the actual government years ago when they were massively in debt? 

 

Edit - link here 

https://www.theversed.com/32754/real-madrids-success-was-expensed-by-the-spanish-government/#.XqmtVmwZLr

I believe its where the 4 towers business complex is now

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"The title of this thread makes it sound like this is somehow substantial but the reality is that it just overturns the verdict of the previous court, which itself was an appeal upheld against the EU Commission.

It arises because Barcelona, Real Madrid, Athletic Bilbao and Osasuna are the only professional clubs in Spain which are categorised as members clubs and are not Limited Companies. As a result they paid a lower Corporation tax rate (5% lower than everyone else). This, however, is a tax on profits. The extent to which those clubs made profits between 1990 and 2016 I don't know, however this case was appealed by Barcelona, not by the others.

In any event, the maximum penalty will be 5m euros each. Hardly much of a threat to their existence."

Edited by Banned User
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6 minutes ago, Banned User said:

In any event, the maximum penalty will be 5m euros each. Hardly much of a threat to their existence."

But no business takes 5m on the chin without getting it back somehow. That's business, and anyone worth 5m in transfers is up for a bid.

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1 hour ago, Roger Red Hat said:

Franco's team.

Same as the Portuguese dictator from around 1930 to 1970.

Named Salazar he believed in the 3 "F's" to keep people happy: Fado, (sad songs about husbands away at sea) Fatima ( some kids saw the Virgin Mary about 100 years ago) and Football (sponsored Benfica which is why Sporting and Porto detest Benfica so much)

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5 hours ago, 22A said:

Announced on the Euronews channel this morning.

For the last 20 years the Spanish government has given tax breaks to Real Madrid, Barcelona and two other clubs.

The European Court of Justice, (highest court in the EU), has ruled that is illegal and must stop. Also, the clubs must now pay back  to the Spanish treasury all 20 years worth of tax break money! 🙂

 

They will enter in to a complicated ground sell/swap/share scheme with Derby and Wednesday.

 

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I suspect it'll hit Barcelona moreso than Real Madrid. The latter seem to have run a tighter ship (of course I don't know the extent to which each benefit).

The billion euros of course is a huge hole for Barcelona but tbh it's a combination of the short term nature of a decent chunk of it as much as the debt pile itself. Tottenham have a similar one but their situation is quite a bit different.

In a Spanish context, Atletico will be big winners from this. Don't think they were a beneficiary. Neither were Sevilla, should help them too.

Shouldn't affect FFP however as this is net of tax. Though if there are hefty interest payments attached then that would have an impact.

To play Devil's Advocate slightly, would Qatar and UAE with their respective clubs not be worthy of a State Aid in steroids? 

On a far lesser note, Aston Villa benefited from £14.4m in HS2 compensation in 2018/19 can of worms slightly? Wonder if HS2 is covered by FOI. Public money...

There were loads I am sure, loads of people whose compensation claims dragged and may still be dragging for all I know but Aston Villa got a meeting with the Rail Minister. Disgusting.

Edited by Mr Popodopolous
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On 04/03/2021 at 11:59, Banned User said:

Helps England attract further talent to our leagues.

To some extent, but worth noting that Tottenham have £175m loan from Bank of England. Due to be repayable this April, Arsenal £120m also repayable by this Summer. Rolled over to next year quite possibly but it has to be paid back, albeit 0.5% Interest is extremely low.

In addition FFP is still a thing (wondering why Everton haven't been called to account yet) and Aston Villa though they should be fine, without financials in the public domain we can but guess.

Man United that footballing commercial behemoth, aok for FFP but being traded on the US Stock Exchange might have issues with hefty expenditure in these times...

Edited by Mr Popodopolous
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