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French tackle sports tax loophole

by David Jetuah

More from this author

04 Nov 2009

Moves to close a French tax loophole have been slammed by Gallic rugby chiefs .

The droit à l’image collectif (DIC), allows clubs to treat up to 30 per cent of a player’s income as “image rights”, the player’s share of revenues from selling club strip and other lucrative spin-offs, rather than salary, but reforms in the French National Assembly are aiming to end the relief.

French clubs used the relief to offset social security and employment taxes.

Mourad Boudjellal, the president of Toulon the rugby club which boasts English talisman Jonny Wilkinson on its books, faces a huge bill, The Times reported.

"It [the tax changes] will cost me between €500,000 and €600,000 for this season and at least €1m next year," Boudjellal said.

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