Will FC Barcelona and Real Madrid soon face scrutiny for potentially benefiting from unlawful state aid? According to Jose Manuel Garcia-Margallo, the head of Spanish diplomacy, the European Commission is set to launch a formal investigation into these two clubs and five others this Wednesday.
As reported by AFP, the European Commission has refrained from commenting on the matter. The Competition Commissioner, Joaquin Almunia, a Spaniard, revealed on April 3 that he had received complaints regarding financial assistance given to seven Spanish clubs. Apart from Barcelona and Real Madrid, the other implicated clubs are Athletic Bilbao, Osasuna, Valencia, Hercules, and Elche. Following a meeting with counterparts in Brussels, Mr. Garcia-Margallo stated that the Spanish government had been notified of the decision to pursue these complaints with a thorough investigation, marking the initial stage of an infringement procedure.
A source from Europe highlights that sanctions could be imposed if it is determined that European law has been breached. However, the source emphasizes that sanctions are not the automatic outcome of the investigation. Despite the government’s assurance that there has been no illegality, Mr. Garcia-Margallo expressed concerns about potential harm to the clubs and affirmed the government’s commitment to staunchly defending them.
The Commission’s investigation aims to assess whether the tax privileges enjoyed by Real Madrid, FC Barcelona, Athletic Bilbao, and Osasuna comply with European law. Additionally, it seeks to examine the compatibility of loans extended by the Valencian Community to Valencia-based clubs, Hercules and Elche. Joaquin Almunia is particularly interested in understanding the real estate transactions surrounding the grounds of Real Madrid and Athletic Bilbao, potentially causing significant upheaval in Spanish football.
