The recession has hit us all hard. Everything that is possibly going wrong with the world at the moment seems to be blamed on the ‘credit crunch’; a fact I and a housemate used to find highly amusing.
‘’Where is all the milk?’’
‘’How come you aren’t going to lectures?’’
While the global economic crisis has of course had its effects on our nation; across the entire Eurozone the effects have been just as devastating. Iceland, Ireland, Portugal and now Greece have been struck down by this financial plague.
But for all their prolifogy in the sporting world Spain, by comparison, are having a much worse time of it when it comes to the books.
The result of that has seen the end of the ‘Beckham Law’; a 2005 tax loophole that allowed highly-paid foreign workers living in Spain to pay a favourable tax-rate. What this in turn means is that as soon as Ronaldo put’s quill to scroll on a new Madrid deal he faces a whopping tax-bill of 40 per cent on his earnings.
Ronaldo believes he is the best player in the world but currently sits below Rooney, Toure and Conca in that league table and he will insist on being paid more than Samuel Eto’o of Anzhi Makhachkala who is currently raking in a substantial £325,000-a-week in Russia.
To do that pre-tax would involve CR7 receiving a massive weekly wage to make up the difference. Real Madrid are of course a huge global force and one of the richest clubs in world football but this sum of money is unprecedented, and most likely a fee they will not want to match.
Not that tax-law in the UK is much more favourable and if Cristiano really wants to earn a lot of money while skimping on taxes, as has been reported, maybe he could sign for Monaco or a rich Luxembourg side or maybe an oil tycoon backed side on the Canary Islands where he can rake the money in.
Didn’t think so?
Should Ronaldo bite the tax-bullet and sign on for Real?
image: © Jan Solo