Loading...
Loading Live Scoring...
*All times CAT (GMT+2)

Football | Spain

Mariano Rajoy © Action Images

Spanish gov gets tough with clubs



The Spanish government has begun slapping embargoes on some soccer clubs' future earnings as it tries to force them to settle outstanding tax bills worth around €750 million at the start of the year.

The clubs' liabilities attracted the attention of European Union anti-trust officials, prompting the government and the football league (LFP) to agree a "road map" in April designed to allow them to settle up.

Spain's tax agency has collected €329.9 million this year, with 305.1 million coming from clubs in the first division, according to an agency briefing note.

Some 130 million euros more is expected to pour into the agency's coffers this year, around 55 million of which is accounted for by embargoes placed on income from sources including audiovisual rights, ticket sales and lottery, the note said.

The agency declined to specify which clubs had been affected by the embargoes.

Soccer clubs' tardiness in paying their taxes has caused deep resentment in Spain at a time when many citizens are having to tighten their belts as wages and benefits are cut and taxes on incomes and goods and services rise.

As well as their tax liabilities, clubs owe around €600 million to the social security system and many are in dire financial straits after years of profligacy.

Prime Minister Mariano Rajoy said this week clubs would not be allowed any more leeway.

"The soccer clubs will pay their debts to the tax authority and the social security system," Rajoy told Spanish radio.

"Soccer clubs, soccer players and everyone else has to pay taxes," he added. "The Treasury Ministry has my instructions."

The government's tough new line appears to already be having an effect on La Liga clubs.

Total spending by the 20 teams in Spain's top division in the last transfer window fell by 65 percent to €128 million, according to the latest Prime Time Sport Transfer Review published in September.

La Liga clubs earned 55 million euros more from player sales than they spent strengthening their squads, the study showed.



Comments

Event Streaming

Channel Streaming

Other Live Streaming

Event Streaming

Channel Streaming

Sports Talk



Segun Odegbami
Nigerians must wake up
Last week, I wrote about the fairytale story of Leicester City’s incredible season in the just...

Dr Errol Sweeney
The Ref and Sir Alex
They say a picture paints a thousand words, and there’s another one that says there’s no smoke...

Sunday Oliseh
Is Pep's failure tag justified?
How on earth can a coach who won so much for his club be called a failure by some extreme...

Calvin Emeka Onwuka
Leicester has changed the game
Even with the fiasco of the abandoned match at Old Trafford, the curtains have come down on the...