`Football money league` clubs Madrid and Barcelona set to lose `privileged` status
London: Real Madrid and Barcelona are likely to become public limited companies, and lose their privileged status as member-owned clubs, which will go against their key advantages behind dominance of Spanish football and success in European competitions.
According to The Independent, the European Commission competition office`s four-year investigation into allegations of illegal state aid against both Madrid and Barcelona, linked to their status as membership clubs, is at tipping point.
It is the second EC investigation into Madrid, who are also under scrutiny for a land deal with Madrid city council dating back to 1996 which critics believe constitutes illegal state aid, the report said.
While Madrid and Barcelona occupy the first two places respectively of the most recent `football money league` of European clubs, published by Deloitte in January, they have been operating under rules which give them significant tax advantages, and are denied to all but two of their rivals, the report added.