Clubs in Italy are expected to still be able to use the benefits of the Growth Decree tax relief scheme, but with some changes to the system to be implemented.
SportMediaset and La Gazzetta dello Sport reported earlier in the week that the decision has been made to bring the Growth Decree to an end, and it will not just apply from the next transfer window but also to signings made from 1 July 2023 onwards.
However, Calcio e Finanza then stated that the scrapping of the tax relief scheme should not concern professional athletes and thus clubs will continue to be able to enjoy its benefits, as well as things like the arts sector.
According to Calciomercato.com, the news leak achieved its desired impact as it once again saw debate arise about the merits of the Decree and whether it should remain in place, with various debates expected to take place in the next 60 days.
It is around €130m euros that football saves by being able to count on the Growth Decree which is not an insignificant sum, and the tax cut allows Serie A sides to compete for players that they otherwise wouldn’t be able to with a heavier rate of taxation.
In a moment like this, in which the Saudi Arabia football movement undermines the competitiveness of European football, there would be severe concerns about how Serie A would attract players if it were made harder to afford them.
The feeling is that there will be a change to the rule and there will be alterations to the parameters which are needed to be within for it to apply, such as the appearances a player makes with his club or national team.
It is a compromise which – at least according to what was released by ANSA – seems anything but obvious if instead what emerges are the indiscretions currently coming from the political world.
The news – which in any case will not apply to existing contracts – now risks complicating the transfer plans of many Italian football managers also in view of the January transfer window, with updates expected.
For the benefit of football, I’m sure there will be some compromise, I believe that the Italian government also cares about having strong football teams, probably the tax will not be 45% but 30-35%
Growth Tax Decree doesn’t help Italy help promote the development of youth talent. Everything is ass backwards in this country… You can tell Italy is struggling to stay relevant both domestically as a league and on the international stage, missing major tournaments.
They need a system that makes it favorable and lucrative for mainstream Serie A clubs to develop and sign home grown players other than to meet a quota. Instead we’re attracting foreigners to the league and then act perplexed as to why Azzurri struggle internationally….
So you’re saying that the English national team is suffering because of all the foreign players that the Premier League brings in? You might want to rethink that one and stop making excuses for gli azzurri’s struggles.
I think it is reasonable for this to apply to sporting matters even if not wider society. A good, healthy football league where the top teams are attracting a global audience is surely worth more to the government’s coffers than the direct tax losses incurred on players incomes.
But perhaps instead, the rule could state that each club has, say, 5 “growth decree” (tax break) slots, regardless of nationality. This would allow Italian clubs to keep top Italian talent too.
You could even go further with this and say something like “you get one slot up to a max of 5, per home grown u23 player in your league squad”, and force teams to nurture talent.