The clock is ticking for Real Madrid to reimburse Madrid City Council of the 20 million euros of state aid illegally provided to the club via a complex land deal made with authorities over 15 years ago.
It concerns a complex land deal with the local government in Madrid when the club transferred part of its former training ground to the city for development, in return for other plots of land, including next to Estadio Santiago Bernabeu.
It’s believed land handed over in 1998 was valued at less than 0.5m euros but was bought back for more than 22m euros in 2011, according to El Mundo.
For decades Los Blancos have been the beneficiaries of state subsidies totaling 1€8.4 million, until the European Union began to shut down the loophole in 2011.
Now, the local council have notified Real that they expect the full total to be returned, along with over €1.8m of interest, according to Mundo Deportivo.
Under EU law, governments are not allowed to use state aid as provision for commercial enterprises if it distorts competition.
The same European Union commission decreed back in July that Barcelona, Athletic Club, and Osasuna each made around €5m in unlawful tax breaks, which must be paid back along with Valencia’s €20.4m earnings from a state-guaranteed loan.