The General Court of the European Union annuls the European Commission’s decision to classify the tax regime of four Spanish clubs as State aid.
Facts/Procedure
Article 19 of the Ley 10/1990 del Deporte (law of 10/1990), dated 15 October 1990, required every Spanish professional football clubs to convert to sports public limited companies (SPLCs). The purpose of this law was to encourage a more responsible management of their activities.
However, the law provided an exception for clubs that had achieved a positive result for the tax years preceding the adoption of the law. Such clubs could choose to continue to operate as professional sports clubs. Four clubs, FC Barcelona (the Appellant), Real Madrid CF, Club Atlético Osasuna and Athletic Club chose that option.
Consequently, as non-profit organisations and in contrast to SPLCs, the income of these four clubs was taxed at a specific rate which was, until 2016, lower...
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