The EU rules Real Madrid must return €18.2M of illegal state aid

The European Union will oblige Real Madrid to pay 18.2 million euros to the Madrid City Council as recompense for illegal aid received in a compensation deal for land that used inflated values. The land in question was originally given to the club in a land exchange deal, however when the club discovered they couldn't use the land they were given excessive compensation from the Madrid City Council, according to the EU.

Final EU decision on Real Madrid state aid

The decision over the illegal aid is final and will be made public at the start of next week, when it will be published on the website of the EU Competition Commission. 

Independent investigation into Real Madrid land values

The EU commissioned an independent company, CEIAM Cabré Alegret, to produce a report into the deal. The investigation was into a piece of land in the Las Tablas neighbourhood, on the northern outskirts of the city that Real Madrid received in 1998 from the City Council in exchange for over 30,000 square metres of the former Madrid training centre in La Castellana (where later, Madrid’s four sky-scraper buildings would be built). The value of this parcel of land in Las Tablas was 488,000 euros at that time. 

The land in Las Tablas however was deemed as "being for public sporting use", meaning the club could not in fact build there, as it was zoned as a "public space" and should never have ended up in the hands of a private company.

In 2011 the Council gave Real Madrid compensation worth 22.7 million euros for the parcel of land in Las Tablas in a series of transfers of other land rights. However the independent valuer employed by the EU has now put the maximum value of the land in Las Tablas at 12.2 million.

In total the EU ruling finds that Real Madrid must pay a total of 18.2 million euros to Madrid City Council for the illegal state aid received by means of the incorrect values used in the transfers.