Simon Jordan claims Premier League clubs and agents will take advantage of new tax cuts to boost transfers, as Cristiano Ronaldo and other high-earnin
09/28/2022 07:12 AM
The UK government’s tax and National Insurance cuts are set to see Premier League players earn an extra £240k a year. Tax is set to drop from 45 to 40 per cent for the country’s highest earners after a decision made by prime minister Liz Truss and chancellor of the exchequer Kwasi Kwarteng – and talkSPORT’s Simon Jordan claims this change will be used by clubs and agents to boost transfers. The Premier League’s highest earner, Man United’s Cristiano Ronaldo, is set to add £1.3million to his net incomeAFP England’s top flight stars earn £4million on average per year, and the tax cuts – along with changes to National Insurance – will see their pay packets boosted considerably. The Premier League already offers the best average salary to players, but has no special tax arrangements for overseas players unlike in Italy, France, the Netherlands and Belgium. But the changes could now be used as a selling point players seeking a move to England, and as extra persuasion for others to join. “Tax can be an issue when negotiating transfers, as players want to know their net income,” one club executive told The Times. “So I’m sure the tax cut will make the Premier League more attractive.” This opinion was echoed by talkSPORT pundit and former Crystal Palace chairman Jordan, who said agents will look to use the new tax rates to their advantage when pushing deals through. Most read in Football quit Alexander-Arnold told to retire from England duty after Southgate's Trippier 'insult' JUR FAULT Klopp blamed for Mane transfer by former Liverpool midfielder OVERCOME Portugal suffer late heartbreak to Spain as Ronaldo faces calls to be dropped order Southgate says Trippier over Alexander-Arnold with Liverpool star now fourth choice WORTHY 'Incredible' Scotland achievements rub salt in the wounds of 'embarrassing' England SEND-OFF 'Legend' - Premier League stars pay tribute as Delph announces retirement Erling Haaland, the league’s third highest earner, will see a big rise in his income after moving from Germanygetty The White and Jordan host 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]. “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.” In comparison, players in Germany are taxed at 45 per cent, meaning players like Manchester City’s Erling Haaland will see a big rise in his income following his move from Borussia Dortmund this summer. Meanwhile in Spain, players are taxed between 43 to 47 per cent. Man City star De Bruyne is the league’s second highest earner and will also see a boostGetty Football finance author Kieran Maguire calculated how the league’s highest earner and Manchester United star Cristiano Ronaldo would benefit from the cuts. Whilst earning his current salary of £400k a week, the Red Devils hero is set to see an extra £1.3million added to his net income. In addition to this, a study by accountants EY revealed Premier League players paid £1.4billion in direct tax from 2019 to 2020. Now, that sum will drop by £70million.