True Madrid are the subject of a European Commission investigation following allegations they've obtained illegal state aid, your choice on which is delinquent and will undoubtedly be of great interest to the likes of Manchester City and Chelsea, under some pressure to conform to Uefa Financial Fair Play rules. The Independent has learn on the case that the EC competition office, run by the Spaniard Joaquin Almunia, has delayed its decision. It is alleged that Real and Madrid City Council decided a good option for land around the Bernabeu arena which will be to be redeveloped right into a lucrative new shopping center and hotel complex. The club's pre-eminence in the transport market and their ability to borrow money is partially determined by the achievement of the progress, along with the development of a roof over the ground, which will then be susceptible to a calling rights market. Florentino Perez is anticipated to be re-elected president in-may, with the club targeting more high-profile players come july 1st, perhaps including Gareth Bale. The accusation against Real is that their dealings with Madrid city council, going back to a agreement between the two parties, represent illegal state aid under article 87 of the Treaty of the European Community. It is alleged that the authority vastly overestimated its debt to the football club to be able that the former could give Real the prime city-centre land they require due to their new development. Just like all major European groups, Real are subject to Uefa FFP regulations which prohibit any form of state support. In a statement released by Uefa's president, Michel Platini, and Almunia last year, they reported that the "objectives [of FFP] will also be in keeping with the aims and objectives of European Union policy in the field of state aid." The investigation in to Real's handle Madrid city council centers upon an area of land in the north of the city, Las Tablas. When it was part of a payment by the council to the team in 1998; having formerly been valued at a421,000 the same area was then valued at a22.7m in 2011, a 5,400 per when the council decided they'd to get it back, cent rise. In lieu of a a22.7m payment, the membership was given the land they needed to produce their stadium. Underneath the competition commission's standard 7.2 on state support they've a year to research and rule on the criticism, made concerning the value of Las Tablas property, until they're still awaiting information from participants. The accusation was raised in December 2011. The research into Real has been stated openly just once by Almunia, who has also centered on other clubs purported to have received state support. Just because a loan from the state-owned Spanish bank Bankia was underwritten by the regional government the Spanish team Valencia were judged to have obtained unlawful state support by a Spanish regional court. Last month, Almunia issued a statement on a study into five Dutch clubs, including PSV Eindhoven, over allegations that state aid had been received by them from local councils in holland. FFP has become a problem key to the continuing future of Europe's elite clubs and those clubs who seek to challenge them. Manchester City, in particular, have come under scrutiny for their 10-year Etihad Airways sponsorship deal they signed in 2011, estimated to be worth between A350m-A400m. West Ham's original package to take control the Olympic Stadium was scrapped following a complaint to europe that financing from Newham Council represented state assistance. In response to The Independent's questions in regards to the method, Real stated that they had not received "any special privileges in its real estate activities since it has for ages been subject to the then present regulation and has received the same treatment as any entity." The club stated that the appraisal of Las Tablas in 2011, which found its value to possess improved 54-fold, was carried about by Madrid City Council, and was consequently "independent." "Acting like this, MCC, through the agreement with Real Madrid, has protected the public interests," Real mentioned, "avoiding judicial procedures that after accomplished might have foreseeably resulted in a responsibility to offer Real Madrid with a higher quantity of compensation." Real said: "The valuation of all the houses have improved due to the time lapse between the different valuation that in some cases exceeds a decade, the amount of evolution of the urban development process and the evolution of property prices." The Independent has observed documentation confirming the existence of an investigation by your competitors commission into Real receiving state aid. A spokesman for the EC competition company said that the analysis was at a "preliminary" point.
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