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Dec 30, 2013

'French tax will have big consequences'

French Football League (LFP) president Frederic Thiriez has called the decision of the Constitutional Council to validate the government's one-off tax on high earners "deeply regrettable."

Frederic Thiriez has described the tax as
Frederic Thiriez has described the tax as "absurd economically."

Holyman: Tax leaves Ligue 1 poor

Despite arguments put forward by opposition MPs and football bodies such the clubs' union, the UCPF, and Thiriez's own LFP, France's highest constitutional body ruled on Sunday a 75 percent tax can be levied on employers on all salaries they pay in excess of one million euros.

The measure, which applies to 2013 and 2014, will bring Francois Hollande's government an estimated additional 210 million euros, 44 million of which will come from professional football clubs, many of whom -- Thiriez told media -- will struggle to handle the additional outlay.

"The decision of the Constitutional Council is deeply regrettable," the 61-year-old said in quotes reported by RTL. "Everyone acknowledges the 75 percent tax is absurd economically, ineffective fiscally and unfair socially."

He added: "The consequences will be very big for our clubs in the years to come."

While Monaco are excluded from the measure and Paris Saint-Germain's Qatari owners have the funds necessary to cover their estimated 20 million bill, their Ligue 1 rivals have no such safety net.

After initially postponing a lock-out originally scheduled for late November, the UCPF -- which represents clubs in France's professional top two tiers -- had suggested they may go on strike later this season in response to the measure, which they claim will force clubs to sell players to cover the cost.

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