Barcelona agree £4.38million fine with Spanish authorities over unpaid taxes in Neymar transfer

BARCELONA have agreed to pay a £4.38m fine to settle a tax fraud case surrounding their signing of Neymar three yeards ago.

The Spanish giants had been accused of deliberately covering up the exact size of the fee they paid Brazilian club Santos when they signed the striker in 2013.

Now Barca have reached a settlement with the authorities to put an end to legal case against them currently in the courts.

A club statement said: "The Board ... has decided to approve the agreement presented by the club's legal services with regard to the case surrounding the signing of Neymar Jr, currently being heard in the Courts of the Province of Barcelona.

"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.

"In addition, the club has been exonerated from responsibility for the fiscal year 2014, which was also part of the proceedings."

An investigation was launched after it emerged Barca paid almost £79m to sign the South American superstar from Santos – having initially claimed the fee was £45m.

The player himself is still under investigation over his own affairs, with the Spanish government last week saying they want to prosecute him over unpaid taxes.

But the vote from the Barcelona board also includes a pact to absolve both current president Josep Bartomeu and former president Sandro Rosell of wrongdoing.

Bartomeu was a vice president under Rosell when Neymar was signed in a complex deal involving multiple contracts.