Livida Sport: A Global Guide to Football Transfers - Second Edition - Manual / Resource - Page 9
Top Rate of Income Tax
Most countries have a progressive tax rate. This means that the tax rate
increases as the level of earnings increases. For the purposes of this
Guide, we have assumed that footballers will be top-rate income tax
payers, so the tax rate shown will be the top rate of tax in that country.
Net or Gross
Is a salary in the relevant country normally paid net or gross, and what is
generally meant by the terms when used there?
Net or Gross Payment - if a player is paid 8net9, this generally means that
the club has an obligation and duty to pay applicable income-related taxes
to the relevant tax authority. If a player is paid 8gross9, this means that the
player must calculate and pay the relevant taxes to the authorities.
Net or Gross Contract - if a player signs a net contract, the club typically
agree on what sum the player will take home after tax. The amount should
be consistent, irrespective of changes to the local tax rates. If a player
signs a gross contract, the club is typically agreeing what sum it will pay
the player, and any change to tax rates during the term of the contract will
impact the amount the player takes home.
Payment Risk
Payment risk refers to the chance of a player having issues receiving
timely payment from a club in the country. This is not specific to any
particular club (nor the particular league) and is a generalisation based on
information published by FIFPRO, a review of cases from The Court of
Arbitration for Sport (CAS) and direct experience of those in the industry.
9
© Livida Sport Limited
