Tactical Insights

Barcelona hit with another financial blow after being ordered to pay €23 million


Barcelona’s difficult financial situation has taken another turn for the worse after the club were ordered to pay €22.7 million.

, the court ruling defined tax simulation as “the use of artifices directed towards tax avoidance, to enjoy fiscal benefits that do not correspond to the actual transition carried out.”

It was also ruled that “the relationship between Barcelona and the agents only serves to cover the payments made by the club to the players. This assessment is shared by the Chamber (of the National Court).

“The club appears to be paying the agent for services that do not exist. When in reality it is paying part of the player’s remuneration in this way for the services they provide to the club, with the corresponding tax implications, which affect the IS (corporation tax), VAT and IRPF (personal income tax), distorting the taxable base for these tax concepts.”

Barca were pretty swift with their response and are clearly unhappy with the ruling. It’s the latest economic problem to hit the Catalan giants, with the club still heavily in debt and struggling to comply with current Financial Fair Play rules.

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