Punishment has been announced for this European giants club today for breaking financial fair play rules

A report emerged earlier this week accusing Los Blancos of failing to account for €122m out of their €135m in ‘other operating expenses’, suggesting that a future marketing agreement with private equity group Providence may have led to some misreporting of finances.

Real Madrid respond to Financial Fair Play allegations. Real Madrid have denied allegations of financial mismanagement levelled against them in the British media.

Should such allegations prove correct, Real Madrid would be at risk of breaching UEFA Financial Fair Play regulations.

While the Madrid outfit have not spoken publicly about the accusations, sources from the club have spoken to both Marca and Cadena Cope to deny any wrongdoing.

Those same sources state that the €122m expenses are ‘not unexplained’, although no further detail is provided.

Real Madrid have been active in the summer transfer market already, striking a deal to sign midfielder Jude Bellingham for an initial €103m before a €17.5m spend on Arda Guler, while veteran striker Joselu has also arrived on a season-long loan deal from Espanyol.

A new big-name forward has also been discussed. Real Madrid were among the early suitors of Kai Havertz before his move to Arsenal, while Tottenham’s Harry Kane was emerging as a top target before Kylian Mbappe’s public clash with Paris Saint-Germain forced a rethink at the Bernabeu.

Mbappe will not be permitted to leave PSG on a free transfer at the end of the upcoming season, and the French club will have a difficult time finding a bidder prepared to pay their asking price for one of the best players in the world.

In the same summer that they agreed to cancel Eden Hazard’s contract, four years after they paid well over £100 million to sign him toward the end of his Chelsea contract, Los Blancos took the position that they are hesitant to invest a significant price on a player entering the final year of their contract.