Marca: European Commission ruled favorable, Real Madrid will recover 20.3 million euros paid in 2016

The Marca reported that the European Commission has finally concluded the files on Real Madrid and Madrid City Hall, and the ruling results are beneficial to both sides. Real Madrid will recover the 20.3 million euros paid in 2016.

The European Commission determined that the urban planning agreement signed by the two sides in 2011 related to the development of the "Four Towers" area does not constitute state assistance, and Real Madrid did not receive any preferential treatment in it.

This decision is actually an amendment to its previous conclusions by the European Commission. In 2016, the agency determined the agreement to be illegal public aid and forced Real Madrid to pay 20.3 million euros to the municipal finance. After the club appealed and ruled by the European Court of Justice, the European Commission reexamined the case and concluded that the compensation package identified in the 2011 agreement was the most favorable solution for the Town Hall.

The source of the dispute dates back to 1998, when the City Hall promised to hand over the B-32 plot in the Rastabras area to Real Madrid. As the promise could not be fulfilled, the two sides renegotiated and revised the agreement in 2011. The new agreement stipulates compensation for economic and urban planning, but its valuation has been questioned by the European Commission. However, the European Commission now believes that the evaluation criteria adopted by the Land Registration, municipal technicians and several independent assessment agencies were valid.

In addition, the Commission stressed that the City Hall had obtained all necessary legal, economic and urban planning reports before signing the agreement, "is no different from what any private operator does under market conditions."

With the final ruling, Real Madrid will immediately request a refund of the 20.3 million euros and accumulated interest it paid in 2016, and the club believes that the lawsuit, which lasted for more than twelve years, has caused it improper economic losses. "This judgment proves that Real Madrid's management always follows the principles of transparency, integrity and honesty," concluded the official statement released by Real Madrid.