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Spain Targets Another Soccer Star On Tax Evasion Charges

Kelly Phillips ErbSeptember 24, 2015

Less than two weeks after soccer fans learned that FC Barcelona midfielder Javier Mascherano will likely face charges for two counts of tax fraud, another high profile soccer player is under investigation. Midfielder Xabi Alonso who played with Mascherano in Liverpool is being investigated for failing to declare income related to his image rights. The allegations are the same as those facing Mascherano and similar to those leveled at über-star Lionel Messi.
Alonso, a native of Spain, moved to Liverpool in 2004 to play for a reported £10.5 million ($16 million US). He re-upped with Liverpool in 2007, inking a five-year deal, but made the switch to Real Madrid in 2009 after an offer of £30 million ($45.7 million US). Alonso stayed with Real Madrid, in his home country, through 2014, and was part of Spain’s championship World Cup team in 2010.
Despite the fact that Alonso was at Real Madrid for a number of years, tax authorities are only focusing the years 2010 through 2012, according to El Mundo (although other sources have suggested that the investigation is centered on 2010).
For his part, Alonso denies any wrongdoing. He took to Twitter earlier this week to proclaim his innocence.
In the tweet, he assures fans that he has fully complied with “each and every one” of his “financial obligations.”
The footballer is currently playing out a two-year contract with Bayern Munich. Bayern, of course, had its own tax scandal in 2014 when the team’s president Uli Hoeness was sentenced to three years and six months in jail for tax evasion.
Alonso is one of a long line of footballers recently targeted by Spanish tax authorities. In addition to Messi and Mascherano, Mascherano’s team, FC Barcelona, is facing a trial together with club president Josep Bartomeu, and former club president Alexandre “Sandro” Rosell on charges are connected to the signing of the Brazil forward Neymar da Silva Júnior (Neymar).
There’s likely more news coming. According to El Pais, late last year, a partner at a high profile law firm in Spain advised that “Right now, four top players at Barça are being investigated.” Among the names dropped that haven’t yet made tax news? Iniesta and Piqué.

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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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FC Barca, FC Barcelona, Mashcerano, Messi

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