Real Madrid have recovered €20.3m following a favourable court ruling from the European commission. They were accused of illegal state help, following a land development agreement with the city council.

The deal harks back to a 1998 agreement, as per Marca, when Real Madrid had agreed a deal to purchase land in the Las Tablas area of Madrid from the Madrid Council. After the Council failed to deliver the land to Los Blancos, the deal was renegotiated, featuring an economic compensation.

Real Madrid were required to pay €20.3m compensation

The renegotiated agreement saw the Madrid Council compensate Real Madrid to the tune of €20.3m. However this raised suspicions, and an external report questioned the value of the land and the compensation. These concerns were in turn raised to the European Commission, who examined the case, and in turn required Real Madrid to return the money to the public funds.

European Commission rule in Real Madrid favour

However, the European Commission have now found in favour of Los Blancos, and the club are set to demand the immediate return of the €20.3m to their accounts. The Commission explain that the Council carried out all of the diligence that any private operator would have, and renegotiated the deal within normal market conditions.

“The ruling confirms that Real Madrid’s management is carried out under the principles of transparency, integrity and honesty,” reads a statement from Real Madrid.

Real Madrid’s ongoing legal battles

It is not the only urban planning battle that Real Madrid have been fighting. Los Blancos have been banned by the Council from hosting concerts until they can soundproof the Bernabeu sufficiently, and bring the noise pollution within the limits of environmental law. Real Madrid and the Council are also redeveloping the area around the Santiago Bernabeu, which involves building an underground carpark linked to the stadium with public money. That project is also in the courts following protests from the local community.