Don’t miss the latest developments in business and finance.

Premier League clubs threatened with extra tax on players' wages

Image
AFP London
Last Updated : Apr 02 2020 | 7:56 PM IST

Premier League clubs that use government money for the salaries of non-playing staff, while continuing to pay players their full wage could be hit by a new tax.

Julian Knight, who chairs the British government's Digital, Culture, Media and Sport Committee, expressed his "dismay" at clubs using the government's furlough scheme which will guarantee 80 percent of salary for staff members up to a maximum of 2,500 pound (USD 3,000) a month.

Tottenham, Newcastle and Norwich have so far said they will use the scheme for non-playing staff, although Norwich will top up the government's contribution to ensure 100 per cent of salaries are paid.

The Premier League are in discussions with the Professional Footballers' Association (PFA) but no cuts have so far been agreed for players' salaries.

"I am writing to express my dismay at the decision of certain PL clubs to furlough non-playing staff while continuing to pay players. This two-tier system is morally wrong," said Knight in a letter addressed to Premier League CEO Richard Masters.

"The purpose of the Coronavirus Job Retentions Scheme is not to support the economics of Premier League clubs."
"We consider ourselves to be very fortunate to be working for the best of clubs at the most difficult of times, so it is entirely appropriate that we play a very small part in reducing the financial burden."

Also Read

First Published: Apr 02 2020 | 7:56 PM IST

Next Story