http://bleacherreport.com/articles/1891259-barcelona-real-madrid-among-spanish-clubs-under-investigation-for-illegal-aid

NOTE:: I copied and pasted from above link.

F.C. Barcelona and Real Madrid are chief among the seven Spanish football clubs the European Commission has opened up an investigation against for allegedly obtaining illegal state aid.

Spanish Foreign Affairs minister Jose Garcia-Margallo spoke with AS.com, confirming that the governing body is looking into club finances. The European Commission has alleged that the seven clubs—Barcelona, Madrid, Athletic, Osasuna, Valencia, Hercules and Elche—committed various acts to avoid footing their aid bill.

The Spanish government has, at this time, denied all allegations.“Clearly the [Spanish] government are going to fight to the end defending these Spanish clubs, who are part of the Spanish brand,” said Garcia-Margallo.

Four clubs (Real Madrid, Barcelona, Athletic and Osasuna) are having their tax statuses looked into, as they are all non-corporate entities that could have been given unfair tax breaks. By avoiding being established as a corporation, these clubs would be able to receive special tax exemptions—similar to how non-profit organizations work in the United States.

Real Madrid are also undergoing an investigation for the circumstances that saw them move out of a training facility that was zoned for businesses, and Athletic are said to possibly have received illegal funds in building the new San Mames Stadium. The new building opened this September after a three-year, high-cost building process. This is not the first time the European Commission has looked long and hard at how Spanish football clubs pay their bills. The organization began a widespread look at club finances in 2012, as the clubs continued to spend despite skyrocketing debt across the board. In total, the debt is said to have exceeded €692m, per The Guardian's Giles Tremlett.

If found guilty of illegally receiving aid, the liable clubs, all but one of which play in La Liga (Hercules being the exception), will be expected to repay the amount—something that could be a crippling blow to Spanish football.

While Real Madrid and Barcelona are among the two most beloved clubs in the world, the others on that list don't have the constant stream of revenue. Tremlett speculated in March that hefty fines could "collapse" the current Spanish football structure.

The official investigation is likely to be opened on either Dec. 18 or Dec. 19. The clubs would then have four months to provide evidence that proves their innocence before a decision is rendered.

WAIT... HOLD ON... are you saying that some Spanish clubs have been financially supported by local goverment and banks? MY WORD. SHOCKING.

Thats not new tbh

@Footaholic

There were incidents where the Spanish royal family supported and even funded Real Madrid (hence the name "Real" -> "Royal"). But that was in the 1930's and '40's. The only recent legible accusations that have been made so far is the law that dictates that Osasuna, Athletic Bilbao, Barcelona, and Real Madrid do NOT have to pay taxes to the government. By doing so, Barcelona and Real's revenue stream upped significantly.

I believe I had also posted earlier about the likelihood of a Gareth Bale transfer repeat. Here it is. Maybe this will shed some light on the possibilities of these 7 clubs being involved in corruption.

"Seems you people overestimate the "splashing 100 M" possibilities.
Bale was a huge risk. There was a reason Ozil was sold for 50 M Euros. Because we can't afford to splash 100 M on Bale without financial consequences. Our club may not have to pay taxes to the government, but Perez makes up for this by over-paying for transfers (cue Zidane, Figo, Ronaldo(s), Kaka, Bale, Beckham, etc.). Our club only has about 200 million in liquids, and we have around a 139 million debt, which is relatively manageable.

And yet, Perez goes and spends 100 million on Bale. The reality which people don't know is that Bale's transfer money has been paid via loans from Spanish banks. We can't afford to dish out 100 million's worth of liquids. It's just not realistically possible for any club (asides from those owned by billionaires). Buying Bale even with selling Ozil for half his price was a huge risk, and now Madrid have to lie low to manage their debt reasonably. That's why Perez agreed to buying youngsters like Isco, Illarra, Casemiro, and Carvajal, and promoting Morata and Jese. It's to prevent the need for the club spending tens of millions on players in the near future. It's also why he's so keen to renew contracts of players like Ronaldo, Pepe, and now Alonso. It's not just that they are integral to our team, but rather that their services are mandatory for Real Madrid to function both realistically, and financially. Just you watch, once RM regain their liquid money to a manageable amount (and pay off those loans), Perez won't give a rat's ass about the likes of Morata or Jese. They mean nothing to him. Just like Ozil meant nothing to him.

Just to point out how heartless Perez is, all the time during Bale's introduction at the Bernabeu, the entire stadium was screaming one thing, and one thing only. "Ozil not for sale!". And one day later, I see "Arsenal complete Mesut Ozil transfer" screaming at me in the headlines."