International

Madrid city demands fortune from Real Madrid

2016-08-29 16:57
Real Madrid logo (File)

Madrid - The Madrid city government said Monday it will pursue Real Madrid for  €18.4 million in illegal state aid that the European Commission ordered the club to repay.

Real, Spanish champions Barcelona and other clubs were found to have received an "unfair advantage" by the commission in July due to tax breaks and overpriced land deals.

"The city hall will establish the measures necessary to carry out the decision of the European Commission to recover the aid of 18.4 million euros granted to Real Madrid," the local government said in a statement.

"At the start of September a two-month period given by Brussels to the city hall to present to the commission the total amount (total owed plus interest) to be recouped, a description of the measures adopted and the documents that show the club has been ordered to reimburse the aid will expire."

The club agreed to sell a plot of land to Madrid's government in 1998, a transaction that eventually was not completed.

As compensation for failure to complete the deal, Real received €22.7 million from the state in 2011.

The value of the land at the time of the initial agreement in 1998 was just €595,000.

The commission's investigation showed that Real Madrid were entitled to compensation of just €4.3 euros, therefore obtaining an advantage of 18.4 million.

The club have already signalled their intention to appeal the Commission's ruling to the European Court of Justice.

Read more on:    real madrid  |  soccer
NEXT ON SPORT24X

What To Read Next

 

Read News24’s Comments Policy

Live Video Streaming
Video Highlights
Sport Talk

 
 
Men
Women
Love 2 Meet
Sport24 on Twitter

Follow Sport24 news on Twitter

Featured

Big month in the world of golf as the FedEx Cup concludes on the PGA Tour, the Race to Dubai gathers steam on the European Tour and the Sunshine Tour offers local golfers the chance to bank some cash. Oh, and not forgetting the USA v Europe Ryder Cup showdown at Hazeltine!

Latest blogs
Vote

Who was the best summer signing in the EPL?

Twitter Follow Sport24 on Twitter

Facebook "Like" Sport24's Facebook page

WIN Enter and win with Sport24!

BlackBerry Stay in the loop on your BlackBerry

RSS Feeds Sport news delivered really simply.

 
There are new stories on the homepage. Click here to see them.