How new tax policy may affect on club competitiveness: An Eric Abidal Case

Renew the contract? Settle the tax issue first!!
Abidal 要續約? 先看政府的稅率政策在說



Spanish deputy prime minister Soraya Sáenz de Santamaría just announced the governmental budget cuts and about to raise the tax rate. The effect? For earning above 300,000 EURO, the interest rate will hike to 56% in Catalunya or 52% in the country as a whole.

西班牙副總理在最近的新聞上表示: 政府將會提高稅率來改善政府的財政狀況. 這讓薪資所得超過三十萬歐元的部分可能提高到56%或者是 52%

Eric Abidal, a french player who joined FCBarcelona in 2007, was paying 24% tax rate under the famous "Beckham rule", which makes the foreign players pay a lower tax rate in the first 4 years playing in Spain. By renewing the contract, he will play the fifth year in Barcelona. With this tax rate hike, he would be paying substantially higher if his salary did not adjust accordingly.

Abidal在2007年加入巴薩隆納, 而早年所謂的"貝克漢條款"讓外國球員在西班牙踢球的薪水, 再前四年享有比較低的稅率. 但即將進入第五年, 他和巴薩隆納合約的更新談判陷入的僵局. 有一部分就是來自於稅率的提高: 如果要維持一樣的稅後薪資, 巴薩隆納得支付更高的稅前薪水給Abidal.

Possible solution: as always for professional clubs they can separate the income of a player in different categories, which will lead to different taxation results. The club might change the porportion of salary, incentive bonus, and the advertisement income for Abidal. In addition, they could seek for options on transfer markets. Currently there are some rumors: regarding to Gareth Bale, Thiago Silva and Jordi Alba.

可能的選擇就是常態性薪資維持不變, 俱樂部透過增加代言機會的代言費, 以及激勵獎金來留下選手. 或者是在轉會市場上找尋其他替代選項. 之前傳出的新聞是熱刺的Gareth Bale (1989) 是米蘭的Thiago Silva(1984) 或者是瓦輪的Jordi Alba (1989) (前兩者是比較貴的選項)

The least expensive options is to keep status quo or to choose a replacement from reserve squad. Barcelona has run a successful youth system and its reserve team, Barcelona B, has been very competitive in the second division. Currently, FCB still have Adriano and Maxwell on their bench, though both players seem not to be the top choice of Pep Guardiola. In reserve team, Muniesa can be a good option though no one wants to rush his development too much.

目前在左後衛這個位置上還有Maxwell跟Adriano兩位選手, 在後備隊(目前在乙級比賽的Barcelona B)上有年輕的Muniesa(1992) 這個選擇.

Few thoughts:
幾個想法

1.) On tax rate hikes: Recalling an early 2010 article written by Krugman on NYtimes. Combined with the recent article, Krugman cannot be seen as an opponent of tax rate increase. He does not like austerity, because it is likely to kill some programs which are essential for the poor to go through the economic crisis. Yet, he believe we shall tax the right group of people in economy, to whom their marginally utility of additional income is about to be zero and collect money from them does not hurt their happiness.

撙節開支方案通常包括兩個部分: 縮減原有的開支規模+擴大財源. 之前從Krugman的社論的一些閱讀給我的一些想法是: 在經濟景氣的時候突然縮減開支並不是什麼好的主意, 這會讓社經地位較低的族群在經濟危機的時候更加痛苦. 然而, 對於富人增稅卻永遠是好事: 事實上, 在收入高過某個程度後, 每增加一塊錢的收入對於這些人的幸福程度並沒有什麼太大的增加.

Then, the quesitons would be: can football players a right group of people to levy a heavier tax on?
所以問題就變成: 是否足球員是增稅的好標的?

Yes and No.
Yes, because they tend to have higher income than the general public, so it is natural to impose higher rates on their income.
No, because the career of professional players are usually relatively short. Their income over life span would be volatile and easier to distorted by the tax system.

不能說對或錯: 站在正方來看, 他們的確是社會中收入較高的族群, 多付一點稅對他們來說並沒有錯; 但是站在反方來看, 他們的職業生涯相較於一般人來講都短,他們收入的波動程度很容易受到稅法變動的影響.

2.) On PP and PSOE:
I am really curious whether PP will target those who are really rich, and rich by chance in Spanish society, and honestly they shall target to increase tax on bonus, not on salary.
I can say I am a symphathizor of PSOE. At the onset of economic crisis they tried to overturned the situation with a increase of spending, causing a 12% deficit in porportion of GDP. Though they tried to tied up their spending with the progress of debt crisis, ending a 8% deficit now. They did not really do anything "particularly" wrong.
對於西班牙兩大政黨來說, 我對於PSOE今年的敗選深表同情. 說實在, 他們沒有做錯太多的事情. 他們在經濟走下坡的時候增加政府開支想要扭轉經濟, 但卻身陷更的洞而無法拔出來. 在事態擴大到難以收拾之前, 他們已經開始削減政府開支, 但是增稅方案卻一直在PP主導的國會中無法通過. PSOE至少把赤字從12%砍到了8%, 雖然離歐盟區的目標3%還有很遠的距離.

沒錯, PP等PSOE下台之後這些事情就可以做了. 但我真正好奇的是, 他們真的會挑對人來課稅嗎?

3.) Impact on football environment: the financial-solid club will thrive?
well, this new tax measure in Spain certainly will put Spanish Clubs under a great pressure on operation. Actually, we can see this more and more obvious in La Liga. With my fading memeories, five years ago, we can easily have 3 or 4 or even more Spanish clubs competing in Champion Leauge or Europa League( UEFA CUP back then), yet this year we only have 2 in Champion League.

As notice on This study, they predict the Spanish Leauge won't hold up for long. This report was issued in 2010 and the tax measure probably will be the first kick on Clubs' financials.Though I still believe a club holding considerable good youth system and bench depth (such as FCBarcelona) won't be affected as much.

這樣的稅率改變對於整體西班牙的職業足球市場絕對會有產生影響, 上面所附的一個研究表示西班牙的職業足球聯盟在兩年內會面臨許多俱樂部破產的問題. 很多足球隊改變他們的經營策略, 包括今年小球會大驚奇的Levante.

對於巴薩隆納來說撙節開支會對他們的續約狀況產生一些問題, 但這支對於青訓體系一向重視, 且板凳深度不是太差, 在歐陸戰場要走得遠短時間來看並沒有什麼問題.

Spending more money in 2012? Not really a good idea.
但在2012年轉會窗口上花大錢? well, 最好不要~