Atlético de Madrid has faced a final court ruling in its tax violation case: Spain’s National Court has upheld the penalty imposed by the tax authorities on the club for attempting to reduce its taxable income using inadmissible expenses. At the heart of the dispute were deductions for UEFA fines, gifts to staff, and provisions for doubtful debts, which Atlético de Madrid included in its financial statements for the 2008–2009 and 2010–2011 seasons.
The legal proceedings lasted several years. In 2016, the tax authority (AEAT) issued a sanction decision, which was upheld in 2020 by the Central Economic-Administrative Tribunal (TEAC). The club, now owned by the American fund Apollo, tried to challenge these decisions, pointing to procedural violations and insisting its actions were not intentional. However, the judges ruled that Atlético de Madrid, as a large organization, is expected to understand tax procedures, and the inadmissibility of such deductions is clearly established by law.
Case details
The case files note that the club tried to reduce its taxable profits by writing off UEFA fines and expenses for gifts to coaches, players, staff, and suppliers. The court stated that such expenses cannot be recognized as tax deductions, since UEFA fines constitute administrative sanctions, and the costs of gifts were not confirmed as being related to clients or suppliers. As a result, some of the deductions were deemed unfounded, and Atlético de Madrid failed to provide sufficient evidence to the contrary.
Financial consequences
Initially, the club set aside €3.8 million for possible payments related to the case; however, after partial acceptance of their appeals, the amount was reduced to €228,000 as of June 2025. A more significant consequence was that, due to this dispute, tax losses totaling €11 million for the two disputed periods were not recognized. These losses could have allowed the club to save on taxes in the future if it made a profit.
Court ruling and next steps
The National Court judges rejected all of Atlético de Madrid’s arguments, emphasizing that the club was not deprived of its right to defense and that its liability was proven. The club was also ordered to cover court costs. Atlético de Madrid had the option to file a cassation appeal with the Supreme Court within one month of the ruling, but club representatives declined to comment on the outcome of the case.
In Spain, issues of tax deductions and sanctions for large organizations regularly become subjects of legal proceedings. Similar disputes arise in other areas as well: for example, in Catalonia, archives have faced a surge in requests for documents needed for citizenship applications, leading to delays and suspicions of fraud — you can read more about this in the article on the overload of Catalonia’s church archives.
