Barcelona Agrees To 5.5M Euro Fine To Settle Neymar’s Tax Evasion Charges

FC Barcelona have agreed to pay a €5.5 million ($6.16 million US) fine over “an error in tax planning” following the signing of star Brazilian forward Neymar from Santos in 2013.

Barcelona Agrees To 5.5M Euro Fine To Settle Neymar’s Tax Evasion Charges

Spanish prosecutors had requested the 24-year-old soccer star stand trial for fraud in relation to his transfer to the Catalan club, alleging both Neymar and his father, who also acts as his agent, had hidden the true value of the deal.

Barcelona stated they paid a fee of €57 million, with €17 million going to Santos and the rest going to Neymar’s parents.

A Brazlian investment fund that owned 40 percent of Neymar’s rights claimed they were not paid the correct amount, with investigators stating the actual price Barcelona paid was closer to €83m.

“The agreement involves the recognition by the club of an error in tax planning for the signing of the player, for the fiscal years 2011 and 2013, when they did not correctly withhold payments resulting from his incorporation,” a statement on the Copa del Rey champion team’s website read.

“In addition, the club has been exonerated from responsibility for the fiscal year 2014, which was also part of the proceedings,” the statement continued. “The board considers the approval of this agreement to be a positive step, one that puts an end to a situation of legal uncertainty that could have affected the viability of the club’s sporting and economic plan in the coming years. Given the importance of this decision, the board has decided to subject the motion to approval at the next general assembly of member delegates.”

The lead prosecutor in the case was reportedly seeking a fine of €22.2 million ($24.64 million US).

Neymar, who is the captain of the Brazilian National Team, made his professional soccer debut on March 7, 2009, at the age of 17. In 2016, he was ranked #21 on Forbes’ list of the World’s Highest Paid Athletes racking up $14.5 million in salary and $23 million in endorsements.

Santos, Neymar’s original club in Brazil, alleges that negotiations for Neymar began in 2011. Payments related to that signing were reportedly made to a Brazilian company controlled by Neymar’s father. Spanish prosecutors alleged the payments were disguised in order to avoid reporting and tax requirements.

Neymar chose to sit out the US-hosted Copa America Centenario in order to focus on the 2016 Olympics in Rio di Janeiro, which will begin in August.

Caption: Neymar playing for Barcelona against Villarreal in La Liga, 1 February 2015. Neymar opened the scoring for Barcelona in their 3–2 win. Photo by Alex Fau via Wikimedia Commons.