Arsenal accuse Real of defaulting on Anelka payments

Arsenal have accused Real Madrid of failing to pay up for French striker Nicolas Anelka.

Anelka moved to Madrid for £22m two years ago, and Real agreed to pay back the money in yearly instalments of £4m, even though just a year later they offloaded him for a similar amount back to Paris St Germain where Anelka started as a trainee.

However, last season's money has never arrived at Highbury, as the club revealed today in their annual report to shareholders: "Real Madrid FC have not paid in accordance with the terms of the agreement with them and if they continue not to conform, this will cause £8m of the debt to be recovered in more than one year."

Real today strenuously denied that they have defaulted on payments, saying a new schedule had been agreed between the clubs. A Real spokeswoman said: "A payment schedule was agreed when the player signed for Real Madrid but that was modified when he moved. Real Madrid will of course make all the payments due. There is no problem with Arsenal."

Arsenal, who signed Anelka as a teenager for just £500,000 from PSG, declined to comment today except to say: "We do not discuss players' contracts, whether it is in terms of their length or any financial implications."

There has been much criticism of Real's buy-now-pay-later dealings in the transfer market. Although they have debts in excess of £160m, the club are culpable of skewing the world transfer market out of all proportion - because big signings win club presidential elections.

Since Real bought and sold Anelka, new club president Florentino Perez has kept the election promises which ousted his predecessor Lorenzo Sanz last July, breaking the world record - and the bank - twice in successive years. First he paid Barcelona £37m for Luis Figo and then he shelled out £45m for Juventus's Zinedine Zidane.

President Perez had previously admitted that the Spanish club were in urgent need of funds to clear the debts and meet their immediate financial commitments.

Then he suddenly announced he was selling Real's training ground, Ciudad Deportivo, for £165m. The Spanish government and major banks had negotiated to buy the land in a move which some have likened to the dictatorial days of Franco, when the club was bankrolled by the government.

However, it now appears that this money is also to be paid in instalments, affecting the club's cash flow - and may explain their problems with Arsenal.