Real Madrid lost its appeal at the Court of Arbitration for Sport against UEFA for an anti-gay chant directed at Pep Guardiola during a Champions League match against Manchester City. CAS judges ruled the chant was "of a severe discriminatory nature" and "far more serious and damaging than acceptable satire and banter," rejecting Madrid's challenge of the €30,000 fine and two-year stadium closure order.

The court detailed how the chant suggested Guardiola was "infected with HIV/AIDS" according to expert testimony. Madrid's lawyers argued expressions aimed at public figures should be analyzed in context, while UEFA countered that anti-gay abuse has "cast a long and deeply troubling shadow" over soccer. The fine represented just 0.03% of Madrid's Champions League prize money of over €100 million for that season.

The incident occurred during Madrid's 3-1 win against City in the knockout playoffs. Fare Network provided evidence to UEFA, though Madrid previously suggested Man City supporters might have been responsible. Madrid reportedly met with fan groups before a recent Champions League encounter to prevent similar targeting of Guardiola, reflecting ongoing tensions between the Spanish clubs.