Real Madrid say they will now continue with their appeal to European Court of Justice over the order to reimburse the Madrid City Council €18.4 million, despite losing their first appeal to the European Commission (EC).
The EC had ruled that the club benefitted from an illegal state subsidy in the form of land adjoining its Estadio Santiago Bernabeu which was handed over by the council in 2011. It ordered the money to be paid to Madrid city authorities who, following the failed appeal by the club, said they would now issue a bill to the club for €18.4 million.
The city authorities said in a statement: “The city hall will establish the measures necessary to carry out the decision of the European Commission to recover the aid of €18.4 million granted to Real Madrid.”
Real had rejected the ruling, saying in a lengthy statement that in fact it was the city council who had got the better of the arrangement which saw the club gain access to land required for its planned €400 million stadium expansion.
The EC argued that Real had been given an “unfair advantage” through tax breaks and land transfers, that it had “benefited from a public subsidy in the form of cheap land” by its Santiago Bernabéu stadium.
Real Madrid were one of seven Spanish clubs, including Barcelona, who had been ordered to repay millions of euros after being found guilty of breaking EU state aid rules.
Barcelona have also rejected the ruling, insisting it broke no rules.
“Since January of 2016, FC Barcelona is taxed according to the reformed corporate tax code and no longer has any difference in taxation with respect to other Spanish clubs. The club will defend the interests of its members against abusive interpretations of the law,” said a brief statement.