Hollande scores own goal

France’s President Hollande has decided to boost his dismal poll ratings by targeting French football clubs for extra tax payments. He might be better off considering whether allowing the French government to spend 57 per cent of GDP is a good idea when Germany manages to sustain its social model on 45 per cent.

France’s President Hollande has decided to boost his dismal poll ratings by targeting French football clubs for extra tax payments. He might be better off considering whether allowing the French government to spend 57 per cent of GDP is a good idea when Germany manages to sustain its social model on 45 per cent.

Earlier this week the president of the French football federation, Noel le Graet, said that he had been assured by prime minister Jean-Marc Ayrault that small and medium-sized businesses (SMEs), including football clubs, would not be hit by a proposed tax hike. Some might question whether a football club is a SME, but in turnover terms they mostly are.

Then on Tuesday a spokesman for Mr Ayrault said there would be no exemption for football clubs or SMEs generally. Frédéric Thiriez, president of the French league, said that this meant a total tax rise of €82m for French football clubs. They would be ‘strangled’ unless they offloaded top players. Mr Thiriez said, ‘France is going to lose its best players, our clubs will see their competitiveness in Europe plunge and the state is going to lose its best taxpayers.’

Companies will have to pay the state 75 per cent of employees’ salaries when they exceed €1m a year. That means that the Qatari owners of Paris Saint-Germain will have to hand over €6m in tax on their star player Zlatan Ibrahimovic who earns €8m a year. His own tax bill will be unchanged.

There are about 20 PSG players who fall into the top tax bracket. David Beckham does not as he is donating his salary to charity, but he has other problems as the French press have derided his contribution in the 2-2 Champions League draw with Barcelona.