Telegraph doubting Real Madrid's Financial Fair Play process

Real Madrid boasts of its financial strength, but an investigation by British newspaper The Telegraph questions whether it is complying with financial fair play rules. The Madrid club has refused to explain why 20 percent of its expenses during the 2021/2022 financial year were not accounted for in its financial results.

The Telegraph has revealed that 135 million euros in payments were included in the category "other operating expenses" during the financial year, of which 122 million euros appear without any explanation, according to the budgets it published last October.

Real Madrid officials have refused to answer questions put to them by the British newspaper on the issue, including the accusation that the latest figure corresponds in whole or in part to a reimbursement for an agreement with a US financial institution, Providence, for the sale of future marketing revenues.

The Telegraph believes that this strategy allows Real Madrid to establish a higher overall revenue figure, which helps it when calculating the salary cap. The newspaper does not question the legality of this financial manoeuvre, but it does question whether it complies with UEFA's financial fair play rules, adding that "there are serious doubts about whether clubs should be allowed to record the sale of future income as marketing revenue rather than debt".

The Tax Agency considers this type of payment for future income as a financing operation, which, for tax purposes, is considered debt.

Los Blancos have only explained 13.6 million of the expenses included under the heading of 'other operating expenses', saying they correspond to the payment to LaLiga for overhead costs, as do all other Primera División clubs.

LaLiga has not responded to The Telegraph and UEFA has refused to comment on the issue.