This is the real media bomb this Wednesday. A survey published by the newspaper The Telegraph questions Real Madrid’s financial accounts and compliance with Financial Fair Play. The English newspaper points out that 122 million of the category “other current management costs”, present in the last annual report of the club, are not justified. This amount represented 20% of the club’s expenses for the 2021-22 season. The British newspaper, which has not received a response from the Spanish club on this subject, associates these expenses with the agreement between the entity chaired by Florentino Pérez and the company Providence, which involves the transfer of a percentage of the income of sponsorship to the American fund. The American investment company has been providing liquidity to the Whites, also through loans, since 2017 and at least until 2027.
THE Telegram ensures that the sums of money obtained through the agreement with Providence have been recorded in the accounts as income instead of debts, which directly concerns the interpretation of financial fair play. Spanish tax authorities consider this type of payment to any entity for a portion of future income as a financing transaction, which for tax purposes is considered debt, according to the newspaper. In the annual report, the club clarifies, however, that part of the “other current management expenses” is linked to the agreement with Sixth Street, a company which has bought a percentage of the operating rights of the new Santiago Bernabeu for two decades. in exchange for a payment of approximately 360 million. This agreement avoided losses of 300 million in the 2021-22 season, according to The Telegraph.
