monaco_logo

Tax-free Monaco embraced after club’s $68 million payment keeps it in French soccer

1 Comment

After conflict between Monaco and the rest of French soccer left the top tier’s seven-time champions on the brink of explosion from their league, the club and the Ligue de Football Professionel reached an agreement on Friday that will allow Ligue 1’s second place team to stay in the French league. Whereas AS Monaco were on the brink of being excluded from next season’s competition because of a new rule targeting their tax-exempt status, the club will now pay an expensive, one-time fee to maintain their place in le Championnat.

“Out of concern for the equality and balance of the competition, AS Monaco are committed to paying a voluntary, fixed and definitive sum of €50 million to the LFP,” the league said in a Friday statement, “and will withdraw their plea to the Council of State.”

Monaco, having spent lavishly since Russian businessman Dmitry Rybolovlev bought the club in Dec. 2011, pays $68.4 million to stay in the league, a status the club has enjoyed since 1933. With tax rates against high incomes climbing in France, the remainder of the French league had grown tired of Monaco’s competitive advantage, the club based in a tax-free principality that operates independent of French law. That advantage has helped lure like likes of Radamel Falcao, João Moutinho, and James Rodríguez to the club, with Rybolovlev’s team alleviated of paying the personal income tax that is customarily covered by French clubs.

source: AP
Dmitry Rybolovlev purchased AS Monaco in 2011 as the club embarked on their two-year stint in the second division. His spending has vaulted them back into Ligue 1 and into a UEFA Champions League spot. (Photo: AP.)

In response to Rybolovlev’s spending, the LFP had adopted a rule that, effective next season, would exclude all clubs whose offices were not located in France. Monaco was pursuing a resolution through the French courts before Friday’s resolution, one that Rybolovlev touted on the club’s website:

“From the beginning we wanted to find an intelligent solution which would work for both sides, within a favourable climate for negotiations.

The AS Monaco FC project can help raise the level of French football and it is good that this has been understood.”

The idea that teams like Monaco and Paris Saint-Germain can help raise Ligue 1’s level underscored the early acquiescence to PSG’s rise. Part of the theory was revenues PSG would raise (or, merely inject) money into the rest of the first division either through player purchases or by raising the league’s commercial profile.

Based in the French capital, PSG is subject to the same taxation as 18 other clubs in Ligue 1. Monaco, however, doesn’t have to endure the same tax on Falcao as PSG’s paying for Zlatan Ibrahimovic. Where it’s customary to have agents negotiate such that clubs are responsible for players’ income taxes, Monaco faces a significant edge when accounting for their high-end talents.

Thanks to Friday’s $68.4 million settlement, that edge gets preserved in perpetuity. From the club’s statement announcing the agreement:

By paying a single, lump-sum, voluntary contribution of EUR 50 million, payable in installments, AS Monaco FC is demonstrating its commitment to French football and will be able to continue to pursue its project for the benefit of all stakeholders.

The shared history between French football and one of its most faithful representatives has made it possible to find an agreement that will put an end to their legal dispute, with an undertaking from both sides that this agreement cannot be challenged later.

If the point of pursuing Monaco was restoring competitive advantage, it’s unclear this agreement makes sense. The $68.4 million fee Monaco’s paying represents only a few years’ taxes on their players. In the big picture, this isn’t something that’s going to inhibit Monaco from taking advantage of their slanted playing field.

In accepting this solution, the LFP’s agreeing with Rybolovlev, even if their statement touted the need for “equality and balance.” Having settled for such a small payment, the deal does little to achieve those ends. Though it may have symbolic value in getting Monaco to acknowledge their advantage, it won’t inhibit players from moving to the club. It won’t deter Rybolovlev from growing his team. It won’t stop Monaco from exploiting their advantage on the rest of their league.

But Ultimately, it does them no good to kick out Monaco. Perhaps France would have a more equitable competition, but they’d have it at the expense of their commercial growth, something that can’t be taken lightly for a circuit that continues to attract some of the world’s best talent. With clubs like PSG and Monaco in the league, Ligue 1‘s profile could eventually challenge that of the Serie A and Bundesliga. When that challenge translates into revenues, the rest of le Championnat‘s clubs may be better off.

At least, that the end game the LFP are hoping to see. Whether that transpires, only time will tell. After Friday’s agreement, however, the experiment is set to run its course. The LFP has signed off on Monaco’s competitive advantage, accepting a large if token payment in the process. Now Monaco has to make good on their promise.

VIDEO: T&T women’s team gives away one of the most bizarre PKs

Leave a comment

Play until you hear the referee’s whistle. In theory, so simple. In practice, it only takes a single second of concentration lapse to become an internet sensation for all the wrong reasons.

[ FOLLOW: All of PST’s USWNT coverage ]

Such is life for Karyn Forbes, member of the Trinidad and Tobago women’s national soccer team. In the above video, you’ll observe Forbes, a 24-year-old midfielder, giving away perhaps the most bizarre penalty kick you’ll ever see. You’ll have to watch for yourself to believe it.

[ MORE: USWNT opens Olympic qualifying with 5-0 victory ]

Unfortunately for Forbes, though the whole of the ball might have crossed the whole of the end line, the referee did not blow her whistle… not until Forbes picked the ball up with her hands and carried it to her goalkeeper.

Bundesliga to go ahead with video replay tests over two years

FILE - In this Saturday, Dec. 8, 2012, file photo, a Hawk-Eye camera is set up at Toyota stadium in Toyota. For the first time at a World Cup, technology will be used to determine whether a ball crosses the goal line during matches at the upcoming tournament in Brazil. With vanishing spray also being used to prevent encroachment by defenders making up a wall during free kicks, officials at the highest level of the world’s most popular sport are finally getting some assistance. (AP Photo/Shuji Kajiyama)
AP Photo/Shuji Kajiyama
Leave a comment

BERLIN (AP) The German Football League (DFL) has given the go-ahead for the possible testing of video replays in the Bundesliga over a two-year pilot phase.

[ FOLLOW: PST’s Bundesliga coverage ]

The DFL says it will be lodging an application with FIFA to take part if the pilot phase is approved by the International Football Association Board at its next annual general meeting on March 5.

The DFL says video replays could be used by a “team of impartial match officials for the purpose of avoiding any evidently incorrect decisions” and that the pilot phase would be preceded by “intensive preparations.”

[ MORE: 17-year-old American MF Pulisic gets Bundesliga debut for Dortmund ]

These would include the settlement of costs among FIFA, the IFAB, the DFL and German football federation, as well as training for the candidates.

West Ham extend Payet’s contract in “enormous show of faith”

West Ham’s Dimitri Payet celebrates after scoring while soap bubbles are blown during the English Premier League soccer match between West Ham and Newcastle at Boleyn Ground in London, Monday, Sept. 14, 2015.(AP Photo/Frank Augstein)
AP Photo/Frank Augstein
1 Comment

West Ham United hope Dimitri Payet is going absolutely nowhere after the club announced on Thursday the 28-year-old Frenchman has signed a contract extension through the summer of 2021.

[ FOLLOW: All of PST’s PL coverage ]

Payet’s current contract was scheduled to keep him at the Premier League club through the summer of 2020, but a series of standout performances (6 goals, 4 assists so far this season, mostly during the season’s opening three months) and rumors of interest from “bigger” clubs meant tacking on another year — and plenty more cash — was the best way to keep Payet in east London for the foreseeable future. The club confirmed earlier this week that negotiations over an extension were underway.

“He’s the best player I’ve signed in 25 years,” said West Ham co-owner David Sullivan. “He’s a [$43 million] player. He’s a supreme footballer. He makes every player in our side play better. On his day, he’s world class, he’s unstoppable.”

Payet, who’s been at West Ham just eight months after signing last summer, could still depart in the summer should he finish the current season strong and/or show up and show out at the European Championship, which kicks off in June. In that event, West Ham would now bag a much heftier transfer fee than they would have done prior to the extension.

VIDEO: Dele Alli’s magnificent juggling goal recreated in hand-drawn crayon

Leave a comment

Remember that Dele Alli goal? No, not that one… that one. Of course you remember it. How could you not?

[ FOLLOW: All of PST’s PL coverage ]

How often does a player receive the ball out of the air, flick it over his head, spin 180 degrees and hit an inch-perfect volley from 20 yards out to secure all three points for his team? The answer is, of course, not very often.

[ MORE: Top 5 Premier League storylines — Sunday’s top-four battle royal

Thus, a goal such as Alli’s stunning winner against Crystal Palace last month has been, and will continue to be, immortalized through numerous recreations in this Digital Age. Above is Alli’s goal recreated in hand-drawn crayon.