According to FourFourTwo, an investigation by the European Commission (EC) has found that Real Madrid, Barcelona, Valencia, Athletic Club, Osasuna, Hércules, & Elche have received illegal financial aid from the Spanish government (in that they have broken European Union regulations).
The EU Commission's investigation covered the following measures on Spanish clubs: pic.twitter.com/6vLvyES0J1— M.A.J (@UItraSuristic) July 4, 2016
As can be seen in the graphic, according to the EC, Real Madrid were overcompensated by €18.4 million for the failure of a transfer of land from the City of Madrid to Real Madrid football club. Real Madrid was also found to have benefitted from undeserved tax breaks due to their failure to register as 'sport limited companies.' This allowed Real Madrid and also, Barcelona, Athletic Bilbao, and Osasuna, to enjoy a corporate tax rate of 25% instead of 30%.
As for Valencia, Hercules, and Elche:
They have all been judged to have benefited from loans granted by the state-owned Valencia Institute of Finance (IVF).
Valencia will now pay back €20.4m, while Hercules will pay €6.1m and Elche €3.7m "in order to restore the level playing field with non-subsidized clubs".
(More specific information can be found in the tweet above)
As things stand this is not a good look for Real Madrid or any of the Spanish clubs involved in this ordeal. Benefitting from illegal financial aid is not only a serious legal matter, but is also a serious social issue in the eyes of the public. In a time where Spain has been struggling economically since the Great Recession, the Spanish will not look favorably upon multi-million euro corporations who have benefitted from unfair compensations, loans, and tax breaks.