Spanish football clubs ordered to repay illegal aid

By Alyssa McMurtry

MADRID (AA) - Seven Spanish football clubs including Real Madrid and Barcelona were ordered to repay nearly 69 million euros ($77 million) in illegal aid from the Spanish government on Monday.

The decision by the EU came after three investigations found that special support from the government gave the clubs – which include some of the richest in the world -- an unfair advantage.

“Using taxpayers’ money to finance professional football clubs can create unfair competition,” EU Competition Commissioner Margrethe Vestager said in a statement.

“Professional football is a commercial activity with significant money involved and public money must comply with fair competition rules.”

Investigators found four of the clubs -- Real Madrid, Barcelona, Atletic Bilbao and Osasuna – benefited from lower tax rates for two decades due to the government’s decision to treat them as non-profit organizations. Their tax status was only changed in January.

Real Madrid, the world’s richest football club, is to pay back a further 18.4 million euros ($20.5 million) after it benefited from a land deal with the city council.

Valencia faces the biggest penalty -- 20.4 million ($22.8 million) -- over taking favorable state loans with unjustifiably terms. Two other clubs also based in the province -- Hercules and Elche -- are to pay back nearly 10 million euros ($11.2 million).