Real Madrid caught in alleged tax evasion scheme over on-line commercial rights

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February 23 – Real Madrid have become embroiled in a new potential tax evasion scandal following unconfirmed reports that it allegedly tried to keep part of the proceeds from the sale of a commercial rights with the help of two companies, possibly fictitious, based  in the tax haven of the Cayman Islands. 

Real is claimed to have signed a letter of intent five years ago with investment fund group Providence to sell the club’s commercial rights online.

Under the terms of the contract, the company apparently had to pay the club about €500 million over 10 years.

However, according to Football Leaks and the European Investigative Collaborations (EIC) media network, Real did not sign the proposed agreement with Providence but with one of its subsidiaries, Luxembourg-based PQ VII Sarl, which is reportedly linked to two companies registered in the Caymans.

This would technically have made it possible to conceal part of the financial arrangement from the Spanish tax authorities.

Those same authorities have come down hard on clubs and players in recent months for any semblance of financial wrongdoing and are said to be requesting an investigation into the latest allegations.

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