Many clubs in continental Europe play in stadiums owned or subsidised by local government. Even so, it is relatively novel for a local government to own a football club. However, that is what has happened at La Liga’s Valencia.
Many clubs in continental Europe play in stadiums owned or subsidised by local government. Even so, it is relatively novel for a local government to own a football club. However, that is what has happened at La Liga’s Valencia.
When the club defaulted on its interest payments on a loan provided by the regional government, they felt that they had no alternative but to seize control of the club, although the move has not gone down well in one of Spain’s most austerity hit regions. The regional government does already part own two lower division clubs.
How this fits in with EU state aid rules is an interesting point, but no doubt it could be justified as an emergency measure.