Madrid - The Madrid city government said Monday it will
pursue Real Madrid for 18.4 million euros ($20.6 million) in illegal state aid
that the European Commission ordered the club to repay.
Real, Spanish champions Barcelona and other clubs were found
to have received an "unfair advantage" by the commission in July due
to tax breaks and overpriced land deals.
"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 euros granted to Real Madrid," the local government said in a
"At the start of September a two-month period given by
Brussels to the city hall to present to the commission the total amount (total
owed plus interest) to be recouped, a description of the measures adopted and
the documents that show the club has been ordered to reimburse the aid will
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The club agreed to sell a plot of land to Madrid's
government in 1998, a transaction that eventually was not completed.
As compensation for failure to complete the deal, Real
received 22.7 million euros from the state in 2011.
The value of the land at the time of the initial agreement
in 1998 was just 595,000 euros.
The commission's investigation showed that Real Madrid were
entitled to compensation of just 4.3 million euros, therefore obtaining an
advantage of 18.4 million.
The club have already signalled their intention to appeal
the Commission's ruling to the European Court of Justice.For
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