OwenHart100%legend
David French changed my life
It's not really up for debate, the EPL is the best league in the world, the best players, best stadium best cashflow. In fact during the financial meltdown of the past few years the EPL has seemed untouchable, even managing to increase revenues, through TV rights, sponsorship and rich foreign owners. However, may its growth be about to be stopped in its tracks by the taxman?
Some may be aware that at this very moment the EPL is currently in court against HMRC in relation to "the football creditors rule" that the EPL has in place. This bascially means that if a football club gets into financial bother, then any other football clubs become the main creditors and are the first to get paid, leaving the taxman and jo bloggs at the back of the queue with little hope of regaining their money. This is because these huge transfer fees, that clubs pay are paid out over a number of years so clubs often owe clubs millions, for players that they no longer own and so on.
So the HMRC wants to change a EPL rule no big deal? Well yes it is because the HMRC wants a change in this rule, at this point in time for a reason. Up in the lowly SPL scottish gaints Rangers are currently being persued for 49 million pounds in relation to a tax loophole they used in the 90s, things are not looking to good for them in this case and a ruling is due in January. This in effect is a test case for HMRC because rumour has it (even though its hardly been mentioned in the english press) that a whole host of clubs in the EPL and Championship used this very same loophole, one of which is Arsenal.
If the rulings go against the EPL and Rangers in their specific cases, the HMRC will be going after all these clubs, and the numbers involved will drawf the 49 million in the case of Rangers. Thats without taking into consideration the money that other clubs will lose if some of these clubs go to the wall as it is well known that HMRC and the Government ain't happy with the way football finances are handled, and are looking to start making some examples.
Im not for a minute suggesting the demise of the EPL or even a huge club like Arsenal, but certainly a change in the football landscape in England. Your thoughts?
Some may be aware that at this very moment the EPL is currently in court against HMRC in relation to "the football creditors rule" that the EPL has in place. This bascially means that if a football club gets into financial bother, then any other football clubs become the main creditors and are the first to get paid, leaving the taxman and jo bloggs at the back of the queue with little hope of regaining their money. This is because these huge transfer fees, that clubs pay are paid out over a number of years so clubs often owe clubs millions, for players that they no longer own and so on.
So the HMRC wants to change a EPL rule no big deal? Well yes it is because the HMRC wants a change in this rule, at this point in time for a reason. Up in the lowly SPL scottish gaints Rangers are currently being persued for 49 million pounds in relation to a tax loophole they used in the 90s, things are not looking to good for them in this case and a ruling is due in January. This in effect is a test case for HMRC because rumour has it (even though its hardly been mentioned in the english press) that a whole host of clubs in the EPL and Championship used this very same loophole, one of which is Arsenal.
If the rulings go against the EPL and Rangers in their specific cases, the HMRC will be going after all these clubs, and the numbers involved will drawf the 49 million in the case of Rangers. Thats without taking into consideration the money that other clubs will lose if some of these clubs go to the wall as it is well known that HMRC and the Government ain't happy with the way football finances are handled, and are looking to start making some examples.
Im not for a minute suggesting the demise of the EPL or even a huge club like Arsenal, but certainly a change in the football landscape in England. Your thoughts?
