Ligue 1’s leading clubs could be handed some welcome news after French media reported that the country’s government is considering scaling back its controversial 75% rate of tax on high-earning individuals.
The government of President Francois Hollande has sought to introduce a 75% upper income tax rate that would have applied to anyone earning in excess of Eur1 million per year. The new tax was seen as a means to aid the ailing French economy, but the French Football League (LFP) and clubs have repeatedly expressed their concern that its effect on a host of Ligue 1’s top stars could have led to a talent drain from France’s top flight.
However, Le Parisien newspaper said that Hollande’s ministers are reconsidering their position on the matter, with talks reportedly being held to limit the amount employers would have to pay as a result of the tax to a percentage of their overall revenue. LFP officials are understood to be aiming for the ceiling to be set at 2-3%, which would save PSG, for example, some Eur30 million and Olympique de Marseille and Olympique Lyonnais around Eur10 million on their original tax bill. “We’re waiting for the conclusions of the study group, but it’s true that there are football clubs whose equilibrium is fragile,” France’s Economics Minister Pierre Moscovici told radio station RMC. However, he added: “It will be a general measure. It’s not possible to just make a rule for football clubs.”
Responding to the latest development in the story, LFP president Frederic Thiriez said: “I think the work we have been fully committed to undertake has borne fruit. The government has understood there is a problem. That’s the positive side of things. But as long as there is no definitive position from the government, I will remain extremely cautious.”