Remier League clubs could face a “stamp duty” on transfers as part of the recommendations made by the fan-led football governance review.
The long-awaited final report of the government review of the game, which was released on Wednesday evening, made a number of recommendations aimed at improving “the governance, ownership and financial viability of English football clubs, in s ‘building on the strengths of the football pyramid’.
One of the recommendations is that a new “solidarity transfer tax” be paid by Premier League clubs when purchasing players from overseas or other Premier League clubs.
It is explained that it would work in the same way as stamp duty, with the resulting money distributed between the pyramid and in grassroots football. The report explains that had a 10% levy been applied in the past five seasons, an estimated £ 160million per year could have been collected for redistribution.
The review states, “In addition to reviewing increased distributions and reforming parachute payments, the review also considered other possible approaches to provide greater support to the entire community. football pyramid.
“Of these, the review considered that the most progressive intervention is a new solidarity transfer tax paid by Premier League clubs when buying players abroad or from other clubs of the Premier League.
“It would work the same for stamp duty and income distribution across the pyramid and at the bottom.”
Along with a new transfer levy, the review also recommends the introduction of a new clause in player contracts adjusting wages by a fixed percentage on both promotion and relegation.
“The review concluded that a pragmatic solution would be to introduce a new clause in players’ contracts adjusting wages by a fixed percentage on both promotion (up) and relegation (down) “, he says.
“That way the risks of relegation can be mitigated, but players can also be rewarded for their success. Providing a fixed percentage increase or decrease also prevents the amount of the increase or decrease from being part of a competitive recruiting scenario. “