Real Madrid faces state aid probe

Real Madrid is one of a number of European football clubs facing a preliminary investigation by the European Commission into allegations of illegal state aid.   The underlying issue here is that many clubs in continental Europe receive favourable treatment from local authorities in terms of the construction of stadiums and other facilities.

Real Madrid is one of a number of European football clubs facing a preliminary investigation by the European Commission into allegations of illegal state aid.   The underlying issue here is that many clubs in continental Europe receive favourable treatment from local authorities in terms of the construction of stadiums and other facilities.   Indeed, many see this as their right as a key part of the local community and in many cases the aid may be perfectly permissible under Community law.

In the case of Real Madrid some land for a new training facility was sold to the club at a very favourable price.   It might be added that many people outside Spain, particularly those on the left, favour Barcelona to Real Madrid for historical reasons connected with the Spanish civil war.   Real Madrid has also been associated with the Spanish royal family, as its name implies.    The royal crown forms part of its emblem.

The Spanish royal house is going through a difficult time at the moment with the poll ratings of the ageing King falling sharply and a son and a daughter-in-law facing allegations of corrupt conduct.    I did, however, meet the crown prince, the Prince of Asturias, for an audience in Madrid last July and I have to say that I found that he was intelligent, personable, well informed and asked searching questions.   I should add that he holds a large number of such audiences as he is very keen to meet a wide variety of people to discuss developments in world affairs. We did not discuss football, however.

It might be asked whether the European Commission has the time to investigate football given the continuing problems of the European economy.   However, like all bureaucratic juggernauts it has its own momentum.    The competition directorate-general, which is involved here, in particular lives in its own world of treaty enforcement and doing things by the book.   These developments have to be taken seriously.