EU Commission Rules in Favor of Real Madrid: Club to Recover €20.3 Million After Long Legal Battle
According to Marca, the European Commission has officially closed the long-running case involving Real Madrid and the Madrid City Council, issuing a ruling that favors both parties. As a result, Real Madrid will reclaim the €20.3 million it was required to pay back in 2016.
The Commission determined that the 2011 urban planning agreement related to the “Four Towers” development did not constitute state aid, nor did it grant Real Madrid any unfair advantage.
This decision marks a significant reversal of the Commission’s earlier stance. Back in 2016, the body had ruled that the agreement amounted to unlawful public aid and ordered the club to reimburse the city treasury €20.3 million. However, following Real Madrid’s appeal and a judgment from the EU Court, the Commission was compelled to re-examine the case. The latest review concluded that the 2011 compensation agreement was, in fact, the most favorable solution for the City Council.
The dispute dates back to 1998, when the City Council had promised Real Madrid a parcel of land in the Las Tablas area (plot B-32). When that promise could not be fulfilled, both sides renegotiated in 2011, agreeing to a new deal that included financial and urban planning compensation. Although the Commission initially questioned the valuation of that deal, it now recognizes that the assessments made by the land registry, city technical staff, and several independent appraisers were valid and consistent.
Furthermore, the Commission emphasized that before signing the agreement, the City Council had secured all the necessary legal, economic, and urban planning reports—acting just as any private market operator would.
With this final ruling, Real Madrid is set to request an immediate refund of the €20.3 million it paid in 2016, along with accrued interest. The club has argued that this 12-year-long legal dispute inflicted undue financial damage. In its official statement, Real Madrid celebrated the outcome, declaring:
“This ruling confirms that Real Madrid’s management has always been guided by principles of transparency, integrity, and honesty.”
