Barcelona, Real Madrid, Osasuna and Athletic Bilbao are the four Spanish clubs who owe millions in the form of tax returns, according to a recent finding through the European Court of Justice. The four Spanish clubs were subjected to a 25% tax return over the last two decades while the rest of the footballing world was subjected to 30%.
According to the court, the tax scheme currently in place is “liable to favour clubs operating as non-profit entities over clubs operating in the form of public limited sports companies”.
While clubs all over the world are struggling financially, those of Barcelona and Real Madrid have been well documented across all media. It is almost common knowledge now that the Catalonian club owes billions in debt.
Whereas on the other hand, Real Madrid are not too well off themselves, but have managed to stay afloat better than their El Clasico counterparts.
This new ruling by the Europeafour n Court of Justice only adds to the financial plight of both clubs. With Barcelona are struggling to pay the salaries of their players, they are also on the verge of the Presidential elections to determine the successor to the recently arrested former President Josep Maria Bartomeu, this only adds to their plight.
Los Blancos have dealt with the situation imposing salary cuts for their players, but even to them, such a ruling in the form of tax returns is sure to strike a blow considering it is a big figure to pay up in the modern financial climate.