Real Madrid potentially face sanctions over unexplained costs of €122m in their latest financial reports.

Los Blancos are one of Europe's wealthiest football clubs - they finished behind only Manchester City in Deloitte's latest Money League rankings - while they flexed their fiscal muscle with the €103m signing of Jude Bellingham recently, but are facing scrutiny over their most recent set of financial results.

The Daily Telegraph have undertaken an extensive investigation into Real Madrid's finances and uncovered that €122m out of €135m in 'other operating expenses' has not been accounted for.

It is alleged that part of these expenses are for repayments on a deal made with private equity group Providence over the sale of future marketing income, with Real Madrid facing questions over whether these transactions should count as debt instead of revenue.

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The club's agreement with Providence also allowed them to stop borrowing in the short-term in order to meet salary costs.

Since signing such a deal in 2017, Real Madrid have not verified how this money is paid back to Providence and there is uncertainty that it is in line with UEFA's financial rules. La Liga also has strict salary budgets which hinge on club revenue.

Real Madrid's last set of financial results before signing the agreement with Providence saw them record only €17m in 'other operating expenses', and these have notably risen in every year bar one since.

The Telegraph add that their research revealed Real Madrid are Europe's only major club with such hefty unspecified expenses in their financial records.

Real Madrid and UEFA declined to comment when pushed for answers on the matter, while La Liga did not offer a response.

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This article was originally published on 90min as Real Madrid scrutinised over unexplained financial losses.