MADRID - Spanish football clubs cut their debt to the taxman by eight per cent last year from 752.3 million euros ($F1.73billion) to 690 million euros ($F1.58 billion), the Madrid treasury says.
"The debts of Spanish clubs to the tax authorities ... stood at 752.3 million euros at the start of 2012. They now stand at 690 million, which represents a drop of around eight per cent," a spokesman said.
Of the total, 535 million euros ($F1.23 billion) concern first division clubs.
The treasury also revealed that 400 million euros ($F919 million) of the total comprises debts which 27 clubs across the country have simply stopped paying as they battle a crippling financial environment.
The Spanish government last April came up with a plan — to which la Liga has signed up — to reduce the debt pile, including the proposal to set aside from the 2014-15 season of a third of clubs' television revenues to pay off more cash owed to the state.
The finance ministry says the plan is now "bearing fruit" while adding the state will do all it can using everything in its power to bring the debt pile under control."