Madrid hit with €18m EU fine

The European Union have demanded that Real Madrid return €18.2m of “irregular” state aid from the city’s council.

AS cites a report from independent consultants CEIAM Cabre Alegret, compiled at the EU’s request, which explains how Madrid swapped the land where their former training ground sat with a piece of land in Las Tablas, complete with permission to build their four office complexes.

The land in Las Tablas was valued €488,000 at the time of the transaction, but it has since emerged that Madrid were compensated €22.7m for the former in 2011, plus a series of other property deals, by the council under its then-mayor Alberto Ruiz Gallardon.

The EU concluded it had doubts that the figures mentioned represented the true value of the land, thus the compensation on Los Blancos’ part constituted illegal state aid.

Madrid argued their deals with the council was not unlawful because they were undertaken in accordance of with the land’s assessed value.

Nonetheless, AS reports the decision is final and will be announced by the EU Competition Commission early next week.

The city expects to recover the €18.2m in full as any appeal from Madrid would conflict with the decision made by incumbent mayor Manuela Carmena.

Tags EU European Union