Possible extra tax on football players' wages causes unrest at football clubs

An unremarkable element in last week's federal budget agreement is now in the spotlight. It appeared that the De Wever government had decided to exclude professional athletes from an earlier political deal on a wage cut, which has been in effect since July. This cut allows companies to avoid paying social security contributions on the portion of gross wages exceeding €340.000. euro per year. For anything below that amount, they continue to pay the regular employer contribution of 25 percent.

The impact on football clubs

The idea was to exclude professional athletes from this favorable arrangement. This was expected to result in an annual structural saving of 10 million euros by 2029. The measure is primarily aimed at footballers, who are the highest earners in the sports world. A professional footballer in Belgium earns an average of around a quarter of a million euros, while at top clubs this can reach half a million euros. If the football If they lost these benefits, there would be a major impact on the payroll of the top clubs.

Political discussion and possible blockades

MR Deputy Prime Minister David Clarinval appears to oppose the plan, supported by Georges-Louis Bouchez, president of the professional club Francs Borains. The question is not only whether footballers will be allowed to retain the favorable arrangement, but also whether the entire exemption will be scrapped within six months of its introduction. The debate also centers on whether a specific professional group can simply be excluded from the scheme and whether this would violate the Constitutional Court's principle of non-discrimination.

Additional tax burden and other budgetary measures

Besides this potential additional tax burden, professional clubs are also affected by other budgetary measures. For example, the average reduction in withholding tax due on wages will be frozen next year. Clubs will also feel the impact of the increased VAT on match ticket sales and hospitality revenue.

On top of that, there's the recent rupture in the media deal with sports channel DAZN, which terminated a five-year deal with professional football – worth €84 million per year. The financial consequences of this will be played out in court in the coming weeks.