April 14, 2021

The CJEU annuls the sanctions for illegal aid to Madrid, Bara, Osasuna and Athletic – La Provincia

The CJEU annuls the sanctions for illegal aid to Madrid, Bara, Osasuna and Athletic - La Provincia


The Court of Justice of the European Union has annulled on Tuesday the decision of the European Commission that considered illegal the tax treatment that allowed four Spanish clubs –Real Madrid, FC Barcelona, Athletic Club Osasuna and Athletic Club de Bilbao– be exempt from the general obligation to become public limited companies.

Brussels concluded in July 2016 that these four teams enjoyed illegal public assistance in the form of a tax privilege in corporate tax for a period of 20 years, as it considered that this scheme was not compatible with the internal market, and ordered the Spain that abolished it and immediately recovered the benefits granted to clubs.

Thanks to this differentiated treatment, Barça, Madrid, Osasuna and Athletic enjoyed an advantageous tax rate of 25% compared to 30% of the rest of the clubs, for which the Community Executive demanded a fine of between 0 and 5 million euros for each team, although the final amount should be set by the Spanish authorities in the process of recovering the aid.

The European Commission has a period of two months to appeal the decision of the General Court of the TEU.

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