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Exclusive: Spanish League Boss Astiazaran Feels Tax Rate Increase Will Cripple La Liga
The president of the Professional Football League (LFP) Jose Luis Astiazaran, spoke exclusively to Goal.com's Ashish Sharma, about why the league has reacted so strongly to planned changes in taxation law.
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Nov 6, 2009 9:00:26 PM
The headquarters of the LFP was overrun by journalists in Madrid today. The normally quiet suburb where the league offices reside, was a hive of activity, as 42 clubs from the top two divisions held an emergency meeting.
The word 'strike' was the buzz word. The reason behind this hub of activity is something called the Beckham Law. In existence since 2003, it states that all foreigners in any profession, who earn €600,000 or more, have to pay only 24% tax instead of the 43% that nationals pay. However, given the depth of the economic crisis in Spain, changes to the Beckham Law if ratified, will mean that from January 1, 2010, everyone will pay the same tax rate.
Speaking exclusively to Goal.com, Jose Luis Astiazaran, the LFP president gave a solid defence of why the tax rate should be left as it is.
"We have had this system for six years, and with that we had Spanish players and foreign players. We also became the number one league in the world. With that we also had good results, and not only with the national team which won the European Championship. But we have also won the Champions League, and Sevilla won the UEFA Cup."
The concern being expressed by the league president and the clubs is that a tax increase will tilt the fine balance between Spanish and foreign players. Astiazaran also feels that the low tax rate has helped high profile footballers consider Spain as an attractive destination.
"It was a good way for foreign players. For them it was a good level of sport and a good level of taxes.
"What's happening in football is that we are working very hard with young Spanish players and we are investing a lot of money in that. But to have a good style of football, we need foreign players to come here who can help teach the youngsters. We also need results, because if you don't have that, then even with very good players in the end you don't win. At the moment we are winning with a system that has two to three very good foreign players."
It's an argument that has been echoed within the game in Spain. The decision to remove the threat of a strike and opt for dialogue with the government, through a special commission, is deemed to be a more positive step, as Astiazaran explains
"The decision we reached was to make an agreement with the government and to try to have solutions not only in this matter, but in others too. In two weeks we will have another general meeting where we will inform the clubs of what is happening and then decide on what to do."
The issue that seems to have angered the LFP the most is that the government did not consult them about such a change. Astiazaran feels that a failure to do this has led to an initial hostile reaction.
"We are going to be open when we speak to them. We are going to explain to the government what our idea is, because they never asked me or the football industry about what our idea is.
"Now in Spain we have the best players in the world and it's because they want to play in Spain, but also because they have a very good situation. Yes they get a lot of money, but they also pay a lot in tax."
And when asked what will be his first message when he speaks with the government, his reply is a very clear one
"Football is very important in Spain"
Ashish Sharma, Goal.com
The word 'strike' was the buzz word. The reason behind this hub of activity is something called the Beckham Law. In existence since 2003, it states that all foreigners in any profession, who earn €600,000 or more, have to pay only 24% tax instead of the 43% that nationals pay. However, given the depth of the economic crisis in Spain, changes to the Beckham Law if ratified, will mean that from January 1, 2010, everyone will pay the same tax rate.
Speaking exclusively to Goal.com, Jose Luis Astiazaran, the LFP president gave a solid defence of why the tax rate should be left as it is.
"We have had this system for six years, and with that we had Spanish players and foreign players. We also became the number one league in the world. With that we also had good results, and not only with the national team which won the European Championship. But we have also won the Champions League, and Sevilla won the UEFA Cup."
The concern being expressed by the league president and the clubs is that a tax increase will tilt the fine balance between Spanish and foreign players. Astiazaran also feels that the low tax rate has helped high profile footballers consider Spain as an attractive destination.
"It was a good way for foreign players. For them it was a good level of sport and a good level of taxes.
"What's happening in football is that we are working very hard with young Spanish players and we are investing a lot of money in that. But to have a good style of football, we need foreign players to come here who can help teach the youngsters. We also need results, because if you don't have that, then even with very good players in the end you don't win. At the moment we are winning with a system that has two to three very good foreign players."
It's an argument that has been echoed within the game in Spain. The decision to remove the threat of a strike and opt for dialogue with the government, through a special commission, is deemed to be a more positive step, as Astiazaran explains
"The decision we reached was to make an agreement with the government and to try to have solutions not only in this matter, but in others too. In two weeks we will have another general meeting where we will inform the clubs of what is happening and then decide on what to do."
The issue that seems to have angered the LFP the most is that the government did not consult them about such a change. Astiazaran feels that a failure to do this has led to an initial hostile reaction.
"We are going to be open when we speak to them. We are going to explain to the government what our idea is, because they never asked me or the football industry about what our idea is.
"Now in Spain we have the best players in the world and it's because they want to play in Spain, but also because they have a very good situation. Yes they get a lot of money, but they also pay a lot in tax."
And when asked what will be his first message when he speaks with the government, his reply is a very clear one
"Football is very important in Spain"
Ashish Sharma, Goal.com
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| Sign up with bet365 for a free bet up to £200 |
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