Signaling credibility in Spain
A deal announced last week between the Spanish government and the soccer league (LFP) aims to force soccer clubs…to pay off the 752 million euros they owe in taxes, along with a further 600 million euros in social security payments by 2020. Those that fail to follow the guidelines face expulsion from competition, says the LFP.
José María Gay…says that the 20 clubs in Spain’s top division had total combined debts of about 3.53 billion euros at the end of the 2010-11 season, up from 3.48 billion euros the previous year. Much of the debt dates back to before the first of Spain’s most recent two recessions began in 2008, and is linked to disputes the clubs lost against tax authorities, he says.