European Union – Concept of state aid. The applicant, Real Madrid Club de Fútbol (the club), sought annulment of the European Commission's decision to classify compensation paid to the club by Madrid City Council as state aid within the meaning of art 107(1) of the Treaty on the Functioning of the European Union. The compensation had been paid to the club following the inability of MCC to perform its obligations under the relevant agreement in relation to the transfer of land to the applicant. The General Court of the European Union annulled the Commission's decision on the ground that the Commission had failed to prove to the requisite standard that the compensation had conferred an advantage on the club. Since at least one of the cumulative requirements for a measure to be classified as state aid had not been satisfied, the compensation could not be treated as state aid for the purposes of art 107(1) TFEU.