Monaco football club has fought off attempts to force it to move its headquarters into France by agreeing to make a "voluntary" contribution of 50 million euros to the French football league (LFP) in order to stay put.
Friday's deal means the club’s business offices can stay in Monaco and it can escape France's new 75-percent tax rate for the super-rich.
In March last year, the LFP issued the club, also known as AS Monaco, with an ultimatum – telling it to move its registered offices across the border into France by June 2014 or risk getting kicked out of the French league.
On Friday, Monaco agreed to pay the league 50 million euros over two years. The deal came ahead of a scheduled court hearing next week to rule on the affair, and was confirmed by an LFP statement, which said: "Monaco have agreed to pay a voluntary...and one-off sum of 50 million euros to the LFP and have dropped their action before the Conseil d'État" [France's highest administrative court].
Monaco is owned by Dmitry Rybolovlev, a Russian billionaire. After earning promotion to France’s top division, the club spent about 170 million euros on players last summer. The new French tax means that employers will have to pay a 75-percent tax on salaries over one million euros. By keeping its operation in the tax enclave, AS Monaco will be exempt.
"AS Monaco should be allowed to shoot for the top of French football,” Rybolovlev said in a Friday statement. “It’s good that this was understood.”
(FRANCE 24 with AFP)
Date created : 2014-01-25