Messi contract highlights tax burden for players in Spain
MADRID (AP) — The leak of Lionel Messi’s multimillion dollar contract has brought attention to the high amount of taxes soccer players pay in Spain, prompting the league to raise concerns about the departure of its top stars.
Details of Messi’s 555 million euro ($ 671 million) contract over four seasons were released by the El Mundo newspaper on Sunday, upsetting the club and instigating the promise of lawsuits.
The contract made headlines everywhere, and Spanish league president Javier Tebas took the opportunity on Monday to underline the high amount of taxes owed by Messi. He noted that the Argentina great has to pay about 270 million euros ($326 million) in taxes for his contract, nearly half of its value.
Tebas said that in Italy, for example, a player with a similar contract would have to pay about 135 million euros ($163 million) in taxes.
“We will have an exodus of talent to other countries,” Tebas wrote on Twitter. “The (league) will lose players who help generate 1.37% of the country’s GDP and more than 180,000 jobs.”
Tebas has long criticized Spain’s tax requirements for soccer players, saying they put the league at a disadvantage in transfer negotiations. He has pushed for the Spanish government to change some of its tax rules that may scare some players away. Rules in Italy and France are considered less strict on players than in Spain.
Local tax authorities in Spain have been going after soccer stars in recent years, accusing several of them of fraud over how they have interpreted the local laws, especially regarding image rights. Authorities amped their monitoring of players’ tax filings and have been making a point of bringing attention to alleged irregularities.
Messi himself was convicted of tax fraud in Spain in 2017, receiving a 21-month suspended prison sentence that ended up as a fine. Cristiano Ronaldo and Neymar also were among the several players targeted by authorities. Neymar left for French club Paris Saint-Germain and Ronaldo for Italian team Juventus. José Mourinho was investigated as well for the time he was coach of Real Madrid.
CONTRACT DETAILS
Among the details on Messi’s leaked contract was a fidelity clause and a bonus for signing an extension back in 2017.