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Jan 25, 2014

Monaco pay €50m to stay in Ligue 1

Monaco have agreed to pay the French Football League (LFP) 50 million euros in order to settle a tax dispute that has risked the club's future in France.

Monaco have been told they need to move their headquarters away from the glamorous Stade Louis II in the principality
Monaco have been told they need to move their headquarters away from the glamorous Stade Louis II in the principality

The LFP declared last March all clubs participating in its competitions had to be based in France for tax purposes by the end of the current season or face exclusion.

The decision, had it been enforced for Monaco, would have meant the financial advantages enjoyed by residents of the principality, and secured by inter-governmental agreements between Monaco and France, would not apply to its football club.

Monaco had previously asked that their "unique identity" be respected and launched legal proceedings against the LFP but have now agreed a settlement that will preserve their status a member of the league.

A statement from the club on Friday said: "Monaco announces that it has reached an agreement with the LFP that safeguards the club's continued participation in the French championships while retaining our actual and effective head office in the Principality.

"By making a voluntary, one-off, all-in contribution of 50 million euros, which shall be payable in several installments, Monaco demonstrates its attachment to French football and can pursue its project for the benefit of all stakeholders.

"The shared history between French football and one of its most faithful representatives enabled common ground to be found, allowing the dispute to be resolved in a way that ensures it will not arise again."

Monaco have long been envied for their ability to attract star names due to their tax laws, with the likes of Falcao and James Rodriguez arriving last summer to help the recently promoted side become Ligue 1 title challengers this season.

 

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