New ‘Super tax’ worries French clubs

Everyone knows that some big clubs earn more than we can even think of, and State Governments around the world always try to bring these high profile clubs under some kind of special tax vicinity so they could charge them higher. This regime is helpful for small clubs who are still in their adolescent age or even for those who are making losses since long, but whenever a government takes an initiative to tax high profile money making clubs, these powerful business houses start opposing the ruling citing one reason or another. This time, we are talking about French clubs who earn more than one million in one financial year, coz according to new government ruling, income beyond that threshold will be charged at 75% which is possibly the highest in the business; hence top French clubs have called a protest against highly unanticipated taxing. Accordingly, all the fixtures scheduled on November 29 and December 2 in all domestic leagues will be halted in lack of available players which will be the first time in last forty years in this country. Last time French players went on strike was in 1972 when they refused to play in both domestic leagues.

The new tax regime is being initiated by the President himself who expects to gather somewhere around €420 million with newly imposed super tax, however, it will also be the hardest to pay for many clubs who have been facing tough financial targets in last few years, hence French professional clubs’ union has come forward and offered their objection. President Jean-Pierre Louvel said in a press meet in Paris that “We are talking about the death of French football. That’s why we are fighting and we will continue to fight. How can you tax businesses that have been in difficulty over the last three or four years?”

New ruling is going to affect clubs who pay more than one million in salaries to players by treating them contrarily to companies which is the main reason for protest as Louvel is demanding clubs should be treated at par with any other profit making company while president of Lyon criticized clubs’ demand and said, “Look at the drama which football is experiencing, we are the only country which taxes companies that are losing money.”

French Football Federation, who is supporting Super Tax said via a statement, “This is a historic decision, made unanimously and with determination, to save soccer.” So, only time will tell how French government is going to take the matter and impose new taxes from next year.