OK, it’s Marca talking here, so it’s not exactly the most reliable of sources. Nonetheless, this shocking report suggests that Monaco money-tree Dmitry Rybolovlev has lost his battle with the the president of the Ligue de Football Professionnel (LFP) Frederic Thiriez over player wage taxation.
Rybolovlev has been battling to maintain his club’s tax advantage over the rest of the league all summer, and while unconfirmed, his potential defeat presents a major worry to the club.
Because Monaco is a principality of France with a sovereign constitutional monarchy government and not subject to normal French law, players are not subject to an income tax (often over half of a player’s reported wage), which presents a massive advantage for the club to lure players in with.
Now, according to the Marca report, the LFP is declaring that in order to level the playing field, Monaco must either adhere to normal French income tax law or pay a massive €100 million ($133 million) fine. With the report suggestion Rybolovlev – as rich as he is – balking at the fine, he may be forced to immediately sell disgruntled players who will have their wages essentially cut in half by the implementation of an income tax.
That sale could even come this transfer window. While there’s no rule against a player moving twice in the same transfer window, it’s almost unheard of, and would be a major to not just the squad but also the ego of the Russian businessman.
Monaco have denied that Falcao will be moving, citing his five-year contract, but didn’t address the issue about taxation.
The club deny categorically rumours around a sale of Falcao. Player signed 5 years for ASMFC.—
ASM FC – OFFICIEL (@ASMFC_MONACO) August 16, 2013
It may not even be just Falcao that moves. With other players sure to be unhappy of the new tax rule, the likes of James Rodriguez, Joao Moutinho, and Jeremy Toulalan could also possibly try to force a transfer out after just arriving this summer.
Again, the report is from a questionable department, but the situation definitely warrants monitoring.