Post by QPR Report on Nov 25, 2008 7:43:51 GMT
Bye!
From The Guardian/Matt Scott: Nov 25
Tax hikes and credit crunch threaten talent exodus
The Premier League could face a talent drain after a perfect storm of financial problems for English football clubs. England has traditionally been one of the most attractive football destinations, where big incomes have been buoyed by one of Europe's softer tax regimes and the strength of the pound against the euro.
But many clubs are already struggling to raise credit in the financial crisis to cover existing borrowing. And with the chancellor yesterday announcing the government's intention to raise the top tax rate by 5% before the end of 2010, the burden on their budgets - probably for next season - has grown.
"The clubs will have to pay a bit more because European players only talk in net," said one leading football agent. "And when you are earning £3m, £4m a year that is not insignificant money net.
"When income tax rates were much higher than they have been lately, big earners like doctors, musicians and other GDP generators were leaving the country. It's going to be interesting next summer."
After trading at €1.50 to the pound 12 months ago, sterling has collapsed in value over the past three months to less than €1.20. Currency markets have therefore already cost European players who are used to remitting their salaries back to the eurozone 20%, with the tax issue only aggravating the situation.
"When you factor in tight credit, the euro against the pound as well as the tax issue for one or two clubs it could be the final straw that breaks the camel's back," said Joe McLean, a sports specialist at the accountant Grant Thornton.
www.guardian.co.uk/sport/2008/nov/25/premierleague
From The Guardian/Matt Scott: Nov 25
Tax hikes and credit crunch threaten talent exodus
The Premier League could face a talent drain after a perfect storm of financial problems for English football clubs. England has traditionally been one of the most attractive football destinations, where big incomes have been buoyed by one of Europe's softer tax regimes and the strength of the pound against the euro.
But many clubs are already struggling to raise credit in the financial crisis to cover existing borrowing. And with the chancellor yesterday announcing the government's intention to raise the top tax rate by 5% before the end of 2010, the burden on their budgets - probably for next season - has grown.
"The clubs will have to pay a bit more because European players only talk in net," said one leading football agent. "And when you are earning £3m, £4m a year that is not insignificant money net.
"When income tax rates were much higher than they have been lately, big earners like doctors, musicians and other GDP generators were leaving the country. It's going to be interesting next summer."
After trading at €1.50 to the pound 12 months ago, sterling has collapsed in value over the past three months to less than €1.20. Currency markets have therefore already cost European players who are used to remitting their salaries back to the eurozone 20%, with the tax issue only aggravating the situation.
"When you factor in tight credit, the euro against the pound as well as the tax issue for one or two clubs it could be the final straw that breaks the camel's back," said Joe McLean, a sports specialist at the accountant Grant Thornton.
www.guardian.co.uk/sport/2008/nov/25/premierleague