Real Madrid has suffered a significant legal defeat after the Court of Arbitration for Sport (CAS) upheld UEFA's fine for homophobic chants directed at Manchester City manager Pep Guardiola during a Champions League clash at the Santiago Bernabéu in February 2025.

The club's appeal against a €30,000 (£25,000) fine and a two-year probation order—which includes the potential closure of a small section of the stadium for one Champions League fixture—was firmly rejected by sport's highest court. In a detailed verdict published after the April 14 ruling, CAS judges described the chant as "of a severe discriminatory nature" and "far more serious and damaging than acceptable satire and banter."

The incident unfolded when Real Madrid hosted Manchester City in a high-stakes European tie. Some supporters were heard chanting that Guardiola was thin, used drugs, and would be seen in Chueca, Madrid's most prominent LGBTQ+ neighborhood. An expert witness at the court linked this to implying the former Barcelona coach was "infected with HIV/AIDS," according to the verdict.

Madrid's legal team attempted to defend the behavior by arguing that "expressions that are humorous, exaggerated or aimed at powerful institutions or public figures" should be judged within their specific context. They also suggested the chant could have originated from Manchester City supporters and claimed the report by Fare experts—an organization that monitors discrimination in football—suffered from "very serious formal and substantive defects."

But UEFA's lawyers countered powerfully, stating that homophobia has "cast a long and deeply troubling shadow" over football. They argued that "for decades, the sport has been marred by a culture of machismo, exclusion, prejudice, and hostility towards individuals based on their sexual orientation," adding that this "persistent intolerance has impacted the personal and professional lives of countless players, coaches and fans and also led to tragic outcomes in the past."

The appeal hearing took place in Lausanne, Switzerland, last September, set against the backdrop of a separate, long-running legal battle between Real Madrid and UEFA over the failed Super League project. This ruling sends a clear message that discriminatory behavior—even in the heat of elite competition—will not be tolerated, and that football's governing bodies are committed to making the sport more inclusive for everyone who plays, coaches, or cheers from the stands.