The UK Government’s recent changes to tax and National Insurance could hand Newcastle United an unexpected advantage on their European rivals in the transfer market.
Tax is set to drop to 40 percent for the highest earners in a move that has drawn criticism from around the country.
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That would allow current Premier League players, or potential signings moving to England, to be taxed less than players in Germany and Spain.
Football finance expert Kieran Maguire used the example of Manchester United star Cristiano Ronaldo’s reported £400,000-a-week salary, which would swell by around £1.3million over a season.
One club executive has already admitted the cut will benefit clubs, telling The Times: “Tax can be an issue when negotiating transfers, as players want to know their net income.
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“So I’m sure the tax cut will make the Premier League more attractive.”
Former Crystal Palace chairman Simon Jordan believes the move could be used as a selling point as Premier League clubs compete with their rivals on the contient in the transfer market.
Speaking on talkSPORT, Jordan said: “If you are an agent who wants a player to go to a club because that club has already suggested to you that they’re going to take care of you, (you’d push that deal through).
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“But, if then the player has a mixed mindset about it, then the agent and the club will be able to talk about the benefit of a reduced taxation system (in the Premier League) compared to the rest of Europe.”