Real Madrid and Barcelona’s pursuit of Dimitri Payet could come to an abrupt end as the European Commission has decided that the two Spanish clubs must repay incompatible aid.
One investigation into tax privileges found that both Real Madrid and Barcelona, as well as Athletic Bilbao and Osasuna, received corporation tax discounts. All four clubs were treated as non-profit organisations, which pay a 5% lower tax rate on profit than limited liability companies (25% instead of the regular 30%).
To remove the undue advantage received in the past, the clubs now have to return the unpaid taxes. Based on available information the Commission estimates that the amounts that need to be recovered are limited (€0-5 million per club) but the precise amounts that need to be paid back are to be determined by the Spanish authorities in the recovery process.
In a second investigation, the European Commission examined a land transfer between Real Madrid and the City of Madrid. The inquiry determined, based on an independent study, that the land affected by the transaction was overvalued by €18.4 million. This gave Real Madrid an unjustified advantage over other clubs, which it now needs to pay back.
David Gold spoke out yesterday regarding Dimitri Payet’s future with West Ham, stating that they will do whatever they can to make sure he remains at the club next season.
We’ll fight tooth and nail to make sure Dimitri pulls on a claret and blue shirt next season, we want to improve our squad and Dimitri is an integral part of what we’re trying to do. But we also must be realistic. If Barcelona or Real Madrid made a bid and he wanted to move there, it would be difficult to keep him.
However, these owed payments could make a deal that much harder for the two La Liga giants to make. Both sides were unwilling to match the £60m valuation of the 29-year-old attacking midfielder but news of these owed payments only make a possible transfer that much more difficult.
Payet was West Ham’s leading scorer last season with 12 goals in his debut season in English football and has carried that form into Euro 2016 having netted three goals and assisting twice for France as they cruised into the semi-finals.
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