UEFA eyes taxing European fat cats

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Published: 24 March, 2009, 18:58

Europe's football fat cats could have to pay a luxury tax on high-money transfers and players' lucrative salaries, with the proceeds redistributed to less wealthy clubs, under plans being considered by UEFA.

Earlier, UEFA came up with another controversial initiative – the so-called 6+5 rule. According to it, all professional football teams will have to start the game with 6 players eligible to play for the national team of the league, in which the match is taking place. At the moment, this will come into gradual effect for the 2010-11 season, when teams will be allowed 7 foreigners, dropping to 6 for the next season, then 5 for the 2013-14.

“There is no simple solution,” said UEFA's spokesman William Gaillard. “All have drawbacks, some worse than others. The salary caps look difficult to manage in a system where we have European competitions like the Champions League interfacing with national leagues and competitions. It would be frightenly difficult to administer.” But a luxury tax and squad limits were “more promising areas,” if properly adapted, he said.

The tax idea in and of itself comes as football's European governing body grows restless about the levels of spending in the European football elite, where some players command salaries of up to $220,000 per week.

On the other hand, UEFA's president Michel Platini is alrmed at the levels of debt some clubs face amid the global financial crisis and wants greater financial transparency. The move is primrily aimed at helping a number of needy European clubs.

However, some believe the campaign for greater financial transparency is a countermeasure against the dominance of rich clubs in Europe. UEFA leadership believes the dominance of rich clubs is creating an unhealthy competitive imbalance in Euriopean leagues and UEFA competitions, and pressures other clubs to stretch themselves financially to compete.

Anyway, the big reform is not yet accomplished and there is no guarantee that top European clubs will readily allow UEFA to dictate to them.