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Report: Verdict on Spain's funding of domestic clubs expected to come Monday

Francois Lenoir / Reuters

Two-and-a-half years ago, the European Commission - the executive of the European Union - launched an inquiry into whether Spain broke rules by giving state aid to some of the country's biggest football clubs, including Barcelona and Real Madrid.

Whether the aid was unlawful has reportedly set be determined.

According to Angela Monaghan of the Guardian, the European Commission is expected to deliver its verdict on Monday and is also expected to find against Spain. Such a judgment would be viewed as further suppression of the surplus that exists in Spanish football and mark a positive step for regulators looking to end the unlawful use of public money to fund clubs.

As Monaghan explains, the inquiry focused on three things:

  • Possible corporate tax privileges enjoyed since 1990 by Barcelona, Real Madrid, Osasuna, and Athletic Bilbao
  • A complex land deal struck between Real Madrid and the local authority in Madrid, Spain
  • The legality of guarantees given by the publicly owned Valencia Institute of Finance for loans to Valencia, Hercules, and Elche

When the European Commission opened the inquiry in 2013, the executive made it clear that taxpayers shouldn't be funding clubs, saying: "Professional football clubs should finance their costs and investments with sound financial management rather than at the expense of the taxpayer. Member states and public authorities must comply with EU rules on state aid in this sector as in all economic sectors."

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