July 10, 2022
The brief from today:
Asian tours resume
It’s been just over two years since COVID first impacted football, and one of the primary ways clubs felt that effect was financially. There was the obvious loss in ticket revenue, but also the loss of TV rights felt by Ligue 1 was marked. Fans not being allowed into the stadiums for matches also had a negative effect on the official club merchandising shops, which typically earned additional revenue for various teams. Then there were also the highly lucrative international tours that clubs—especially Premier League sides—would embark on during the summer that also suddenly ceased. While recent years prior to COVID saw teams venture into the burgeoning US market, the cash cow for some of England’s top sides like Manchester United, was always Asia. For the first time since 2020, teams have made their way back to the Far East. First, Manchester United landed yesterday in Bangkok, and today Liverpool joined them. The two teams face each other in a couple of days, and then have other stops to make in that part of the world. Hordes of supporters received both sides at the airport. In similar fashion, Tottenham were treated to the same reception when they touched down in South Korea, with the welcoming party in Seoul including Tottenham’s own, Son Heung-min. The excitement level in both countries make it quite clear why these long haul flights are made, and is also a glimpse into why these tours are so financially lucrative.
Rooney’s potential next job
Former England striker, Wayne Rooney, recently resigned from his coaching position at Derby County amidst the club’s financial issues and relegation to League One. He is currently assessing his next option, and now reports have surfaced that he may be considering D.C. United as a potential landing spot. Rooney played for the MLS side for just over a year in 2018 and 2019, and while nothing is guaranteed presently, he is casting a wide net. His spokesperson said, “A number of discussions have taken place with clubs—both at home and abroad—interested in the possibility of Wayne becoming their manager. At this stage, no decision or agreement has been made with any club.” The rumors are one of those clubs discussions took place with is D.C. United, but time will tell whether he sees his next step in management being in MLS.
Tax collection
Her Majesty’s Revenue & Customs (HMRC) is presently investigating 329 professional footballers for avoiding taxes. This number is up over three times from the 93 investigated in the 2020/21 season. Thirty-one clubs are also being looked into, as well as 91 agents. The investigation is currently working hand in hand with the Compliance Project set up by the Football Association. Much of the issue stems from players’ image rights, where loopholes have permitted establishment of companies that handle those rights on their behalf, which in turn results in a lower corporate tax rate. Instead of the revenues from the image rights being in the top tier of Income Tax with the rest of their salary, this technicality allows for a much more favorable 19 percent Corporate Tax on that portion of proceeds. Samuel Eto’o was recently in Spanish court, and pleaded guilty for a similar issue dating back to his playing days at Barcelona.