October 3 – Belgian football is facing a significant financial challenge as tax authorities are demanding the repayment of €121.2 million from the industry.
As the authorities await payment, they have frozen provisional broadcasting rights for the majority of Belgian clubs in an effort to put pressure on clubs to pay their outstanding taxes.
The government action stems from a 2018 investigation, dubbed ‘Operation Clean Hands’, that uncovered widespread financial misconduct in Belgian football, including allegations of fraud, money laundering, bribery, and match-fixing. Dejan Veljkovic, a prominent football agent involved in the case, provided evidence of illicit activities by clubs, coaches, and intermediaries in exchange for a reduced sentence.
However, despite six years passing since the investigation began, no formal convictions have been made.
The Special Tax Inspectorate (BBI) has been conducting its own inquiries into these financial irregularities, opening 114 cases, of which 71 have been closed. The inspectorate has identified €121.1 million in unpaid taxes, often resulting from falsified contracts and other underhanded dealings. The names of the individuals, companies, and clubs involved remain undisclosed by the authorities.
Among the affected clubs, KV Mechelen has been the first to publicly announce an agreement with the tax authorities. The club acknowledged the difficulty of the negotiations, with current shareholders making significant financial contributions to secure the deal.
The broader Belgian football landscape is already struggling financially, with the industry recording a combined loss of €650 million over the last six fiscal years. According to reports, at least five other professional clubs are in advanced negotiations to settle with the tax authorities.
Contact the writer of this story, Harry Ewing, at moc.l1727965582labto1727965582ofdlr1727965582owedi1727965582sni@g1727965582niwe.1727965582yrrah1727965582