How the football bubble will explode (not just the transfer market)
Due to Covid and more, the January Serie A transfer market could offer few surprises by blowing up the transfer market bubble
The January transfer market has always been as complex as it is fundamental to consolidate or upset the balance of the Serie A football championship. This year, however, due to Covid and a bureaucratic mess, the Italian clubs do not seem to have room to give samples to the fans.
THE PRE COVID REPAIR MARKET
If the winter transfer market is already a very complicated territory for all European sports directors, this year, in particular, being able to buy players who can improve the level of the squad seems an almost impossible task. Often the players' card in this transfer window is overestimated: it is very difficult to convince a club to sell a player in mid-season because in a short time (unlike the canonical two months of the summer transfer market, the winter session lasts only one) it must succeed to replace it. Despite all the technical-economic difficulties, the repair market is normally quite sparkling: according to a Fifa report in January 2020 there were 4108 transfers that moved about 1.15 billion euros. The clubs in the “top-5” leagues (England, Italy, France, Spain and Germany) were involved in 14.1% of these operations but their contribution accounts for 71.8% of the total spent. The English clubs are the ones that have invested the most, exceeding 230 million euros, the second highest figure ever for the Premier. The Italian teams are in last place in the comparison with the top 5 for incoming transfers and second, behind only the German Bundesliga, for fewer transfers. One could therefore assume few purchases, but good (or presumed so) because despite the poor operations, the Serie A teams have invested 126.7 million euros, less only than the Premier League and the Bundesliga.
MARKET FORECASTS
Definitely different numbers are expected for this season. Covid has also hit football hard by blowing up the transfer market bubble which, in recent years, had reached frightening peaks. Compensated transfers to the club will be reduced to a bare minimum as loans ramp up. Players expiring their contracts or, even better, released, will be the most requested on the market.
Everything seems to portend a subdued January but we must never forget that the expenses of football teams are often unpredictable. The emergence of an opportunity could lead clubs to an extra effort. In fact, there are leagues, and more particularly companies, more dependent on the box office (such as Ligue1 and Championship) that, in order to have liquidity, could sell their best players for balance.
AUTOGOL GROWTH DECREE
To add further critical issues and uncertainty to this already complex market window, the Revenue Agency took care of it which, with a note on its website, communicated that professional sportsmen could not benefit from the tax relief provided for by the growth decree. This decree in 2019 had in fact extended the audience of beneficiaries of the special regime for "repatriated" workers to professional sportsmen too, with taxation reduced to 50% for employee income for those who move their residence to Italy after at least two years. abroad and committing to maintain residence in Italy for at least two years. A subsequent Dpcm would then have had to define the modalities for the payment of the contribution, but this decree was never issued. The thesis of the Revenue Agency is based on this gray area which, translated into figures, could cost A clubs between 140 and 150 million euros according to La Repubblica . The most grotesque aspect of this situation is that the circular issued by the Agency is in contradiction with the instructions to the tax return already approved for 2019 (in addition to the 2020 form for the return)
SOLVED ON THE MARKET
The solution to the problem could be the issuance of the Dpcm necessary for clubs to avoid having to shell out several millions with the coffers that are already languishing. But these days, in the eyes of the Italians, it is not a politically simple move to take the side of the scroungers of football by guaranteeing heavy tax relief. Giuseppe Conte only a few months ago had returned the Serie A league's request for refreshments for around 600 million in lost earnings to the sender. However, we must not forget the fundamental role of football and in particular Serie A in financing the other federations. The Italian top league brings to the state more than 700 million only from withholdings on salaries, when public investment for the other federations is around 400 million. If the situation does not clarify, clubs, in order to protect themselves from the tax point of view, could insert ad hoc clauses in new contracts to circumvent the obstacle. The market has just started, we just have to wait for the end to take stock
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/serie-a-il-mercato-di-gennaio-ci-regalera-poche-pallonate/ on Sat, 09 Jan 2021 17:20:32 +0000.