EU ready to act on Spanish clubs' debt

http://www.guardian.co.uk/football/2013/mar/21/eu-debt-spain-football-clubs

European authorities prepare to halt public funding of debt-ridden clubs.

In a move that threatens to provoke the partial collapse of a football system built on unsustainable piles of debt, competition authorities in Brussels want Spain's government to explain why it has allowed clubs to build up vast, unpaid tax and social security debts.

With many clubs in the top two divisions already having trouble paying bank debts totalling some €3.5bn (£3bn), the move would likely force some clubs into liquidation. Historic names such as Deportivo de La Coruña or Racing Santander could simply disappear. Other top clubs, such as Valencia, will have to sell players and face years of decline.

Indignant MEPs are already demanding to know why Spain is happy to request €40bn in aid from eurozone taxpayers for its banks while allowing the clubs to build up a tax debt of €692m.

Is it possible for insignificantliga to become even less significant?

Interesting. Thanks for posting.

Do you think anything will actually ccome of this?

I, personally dont. If it happens to the small teams it is only a matter of time before an inquest hits the bigger sides.

Swanhends wrote:Is it possible for insignificantliga to become even less significant?

Valencia, a club which has to regularly sell players, is going to have to sell players? Hello relegation scrap.

Valencia has always bounced back, even when they've sold their top players.

EU the European America

halamadrid2 wrote:EU the European America

What's facepalm worthy about this? Spain's economy is a mess and they're cutting down all public services yet football clubs don't have to pay their taxes. That's just not right.

Actually there is a reason to facepalm. EU have no business butting into other countries businesses be it the country is on verge of a meltdown or worse. there is a reason britain want out of it. they are trying to create this one nation they can dictate and control from their stupid headquarter. they knew this common currency thing wasn't going to work out in the long term anyways

as for the clubs avoiding tax thats nonsense atleti are in this much debt because of the taxes they didn't pay in the 90th, they are paying it in installments currently. And even if it was true that they find a loophole to avoid tax then triple I wonder whether they are going to take the same measures on amazon, google and starbucks etc who keep avoiding paying taxes in countries they operate in

also I wonder whether the bankng crisis in cyprus has anything to do with spain

besides aren't portugal in bigger debt than spain anyways?? dem clubs getting bailed out and dat spain being in this much debt have little to nothing to do with the clubs in spain I am afraid

Art Morte wrote:

halamadrid2 wrote:EU the European America

What's facepalm worthy about this? Spain's economy is a mess and they're cutting down all public services yet football clubs don't have to pay their taxes. That's just not right.

Agree with Art Morte, i cant understand why some are exempt from tax, this is clearly unfair..but why let it get to this stage in the first place

halamadrid2 wrote:Actually there is a reason to facepalm. EU have no business butting into other countries businesses be it the country is on verge of a meltdown or worse. there is a reason britain want out of it. they are trying to create this one nation they can dictate and control from their stupid headquarter. they knew this common currency thing wasn't going to work out in the long term anyways

as for the clubs avoiding tax thats nonsense atleti are in this much debt because of the taxes they didn't pay in the 90th, they are paying it in installments currently. And even if it was true that they find a loophole to avoid tax then triple I wonder whether they are going to take the same measures on amazon, google and starbucks etc who keep avoiding paying taxes in countries they operate in

also I wonder whether the bankng crisis in cyprus has anything to do with spain

besides aren't portugal in bigger debt than spain anyways?? dem clubs getting bailed out and dat spain being in this much debt have little to nothing to do with the clubs in spain I am afraid

So it's all right for Spain to ask for the EU taxpayers' money to bail them out but not gather hundreds of millions in taxes from the country's football clubs?

And EU has business to monitor and ensure that its member states follow commonly agreed rules. No country has been forced to enter the union and if some want to leave they won't be forced to stay.

If there is a similar situation in Portugal, EU should look into that as well.

Art Morte wrote:

halamadrid2 wrote:Actually there is a reason to facepalm. EU have no business butting into other countries businesses be it the country is on verge of a meltdown or worse. there is a reason britain want out of it. they are trying to create this one nation they can dictate and control from their stupid headquarter. they knew this common currency thing wasn't going to work out in the long term anyways

as for the clubs avoiding tax thats nonsense atleti are in this much debt because of the taxes they didn't pay in the 90th, they are paying it in installments currently. And even if it was true that they find a loophole to avoid tax then triple I wonder whether they are going to take the same measures on amazon, google and starbucks etc who keep avoiding paying taxes in countries they operate in

also I wonder whether the bankng crisis in cyprus has anything to do with spain

besides aren't portugal in bigger debt than spain anyways?? dem clubs getting bailed out and dat spain being in this much debt have little to nothing to do with the clubs in spain I am afraid

So it's all right for Spain to ask for the EU taxpayers' money to bail them out but not gather hundreds of millions in taxes from the country's football clubs?

And EU has business to monitor and ensure that its member states follow commonly agreed rules. No country has been forced to enter the union and if some want to leave they won't be forced to stay.

If there is a similar situation in Portugal, EU should look into that as well.

I don't think Spain have asked for a bail out they are just ij recession like 99% of all EU countries atm. they are crawling out of it

heck there is talk of a double dip in britain. Greece and Cyprus are the only ones who have asked for a bail out

as for you don't need to be in EU thats nonsense. EU want all countries in Europe to be part of it so that they can hand out unnecessary laws and legislation that would otherwise not be looked at in countries. why do you think some of the countries in EU are there when they contribute zilch to it?? also Merkel is trying to put pressure on Cameron to stay in it by likening him to cartoon charecters to voice her anger at his wish of exiting the European Union

"commonly agreed rules" thats where the problems lie. some of them ate just so unnecessary it pains you to see countries not being able to extradite crminals such as terrorists to their home nation on human rights grounds. its all just poop if you ask me

so imho Spain have an able elected government who are trying to get them out of the dip in thos present state where no countries in the EU can boast of growth apart from Germany I think

AbraKebabra Alacalamb wrote: Valencia, a club which has to regularly sell players, is going to have to sell players? Hello relegation scrap.

we have little to no debt to the authorities, it's all commercial so nothing changes for valencia... doesn't matter if bankia is nationalised, that doesn't mean our debt magically changes to owing tax payments

@halamadrid - Spain did not technically ask for a bailout, though they heavily implied they needed one. They also received a bailout, courtesy of France and Germany, and the prime minister was very adamant about not calling it a bailout.
But it totally was a bailout.

Rich owners could always take them over and save them.

VivaStPauli wrote:@halamadrid - Spain did not technically ask for a bailout, though they heavily implied they needed one. They also received a bailout, courtesy of France and Germany, and the prime minister was very adamant about not calling it a bailout.
But it totally was a bailout.

it could very well be classed as aid something like UK pay to Iceland for example

But I mean more in a way like the Greece situation where the European Union(taken out of the eu budgey after agreements by all in it) agrees on a paypackage to help an ailing nation which then has to be used carefully and any changes reported to the EU.

It's been coming. With the economic crisis in Spain and ridiculously unfair TV rights allowance I can't say I'm surprised one bit. Look how many Spanish talents leave their country for England.

Sad times

Spanish LFP confirms Real Madrid owe €541m to banks, clubs, players, etc

what happened to http://www.goallegacy.net/t32724-real-madrid-king-of-finances?highlight=madrid ?

Not sure where this controversy come from, was Florentino cooking the books?

in general, both Portugal and Spain have taken the right steps to get their economies going again...  but Spain's footy clubs haven't.

When a country makes sacrifices, it has to be everyone.

EDIT: and btw, greece is bouncing back too.

Gonna need to sell a lot of Bale shirts

fatman123 wrote:Gonna need to sell a lot of Bale shirts

Otherwise they're going to need a Bale out.

Interesting how self proclaimed ''Kings of finances'' Real Madrid were recently exposed as spending themselves into a half a billion euro debt but the emphasis from the authorities all seems to be on the smaller(no disrespect intended) Spanish clubs.... 

BarrileteCosmico wrote:Not sure where this controversy come from, was Florentino cooking the books?

Just the media