On 28 September 2016, the Commission published the
non-confidential version of its negative Decision and recovery order regarding the preferential
corporate tax treatment of Real Madrid, Athletic Bilbao, Osasuna and FC
Barcelona. It is the second-to-last publication of the Commission’s Decisions
concerning State aid granted to professional football clubs, all announced on 4 July of this year.[1]
Contrary to the other “State aid in football” cases, this Decision concerns
State aid and taxation, a very hot topic in
today’s State aid landscape. Obviously, this Decision will not have the same
impact as other prominent tax decisions, such as the ones concerning Starbucks and Apple.
Background
This case dates back to November 2009, when a representative
of a number of investors specialised in the purchase of publicly listed shares,
and shareholders of a number of European football clubs drew the attention of
the Commission to a possible preferential corporate tax treatment of the four
mentioned Spanish clubs.[2]More...
Last week, the French
newspaper Les Echos broke the story that UEFA (or better said its subsidiary)
will be exempted from paying taxes in France on revenues derived from Euro 2016.
At a time when International Sporting Federations, most notably FIFA, are facing
heavy criticisms for their bidding procedures and the special treatment enjoyed by their officials, this tax exemption was not likely to go unnoticed. The French minister
for sport, confronted with an angry public opinion, responded by stating that
tax exemptions are common practice regarding international sporting events. The
former French government agreed to this exemption. In fact, he stressed that without
it “France would never have hosted the competition and the Euro 2016 would
have gone elsewhere”. More...