Did European taxpayers contribute to Spanish million-euro football transfer?

European Parliament Member Sander Loones wants the European Commission to investigate the financing of the transfer of footballer Gareth Bale from England’s Tottenham Hotspur to Spain’s Real Madrid. A handful of Spanish banks, rescued by tax-payer’s money from European funds are said to have been involved in this deal. “Money from the taxpayer can and must be used for purposes other than financing football Transfers The money flows from Flanders to Brussels and Wallonia are called transfers. The transfers from the federal budget, the Financing Law and social security amount to between 6 and 7 billion euros per year, and 11 billion euros if debt repayments are included. The size of the transfers is always contested by the French-speaking side or they are just referred to as normal solidarity contributions. A study by Vives (KU Leuven) revealed that the transfers did not serve solidarity, but had a paralysing effect on the growth of both the Walloon and Flemish economies. transfers ,” Sander Loones states.

In 2013, the two football clubs reached an agreement about the transfer of Bale for 91 million euros. “The leaked agreement demonstrates that Spanish banks played an important role in this. After all, it appears debt securities have been issued to Tottenham, which served as collateral for this transfer amounting to millions. That would amount to illegal state support,” Sander Loones states.

Bankia, one of the Spanish banks involved, was even rescued by the European Stability mechanism (ESM) for no less than 18 billion euros. The ESM is a financial emergency fund that is supplemented with tax money from all EU Member States. “Thus, the Flemish taxpayer also supported Bankia and therefore contributed - be it indirectly or not - to the transfer of Bale,” Sander Loones points out.

Financial fair play

Sander Loones considers the potential use of European financial means for transfers in breach of the idea of ‘Financial fair play’, with which the Union of European Football Associations (UEFA) hopes to improve the financial health of European clubs. “Many Flemish clubs shouldered their responsibility and straightened out their finances. Other clubs continue buying stars and living beyond their means. That simply is unfair competition. Football fans deserve fair competition, and the taxpayer deserves proper use of his or her money,” Sander Loones concludes.