In 2011 the “David Beckham Law”, which allowed elite foreign players to pay 24% tax, half the top rate in Spain, was ripped up by the Spanish law makers. Now, millionaires in Spain have to pay up to 54% of their earnings to the Spanish government.
Cristiano Ronaldo is signed until 2015 at Madrid but Real will pay a lot more for his services than they intended to when they signed him in 2009. Before the abolishment of the Beckham Law, Real Madrid paid Ronaldo €12m per season (net) and about €2.88m to the taxmen. Today, Real Madrid pay him €12m per season (net) but more than €6.2m to the taxmen. This means Ronaldo used to cost Real Madrid €14.88m per season but his cost now is more than €18m.
According to reports in Cristiano Ronaldo’s contract there is a clause stating the star must remain the world’s best paid player. However, Ronaldo is now running second behind Samuel Eto’o (€20m per season) and Zlatan Ibrahimovic (€14m) in that aspect.
It’s understood Ronaldo wants his contract re-adjusted with a pay-rise so it will get him back to be the highest paid footballer in the world. This means Real Madrid will have to pay him at least €20m per season (net). That’s more than €30m gross payment to keep Ronaldo in Madrid.
Now, that’s about 6% of Real Madrid total income and that’s just for one player.
The question now is who can buy Cristiano Ronaldo? PSG have the money but they already have a major superstar and the Financial Fair Play rules must mean something to them. Same story with Manchester City. Can Manchester United, with a new huge sponsorship contract with GM ($559m over seven years) can hand CR7 more than €20m per season? I doubt that.
Maybe Ronaldo’s agent, Jorge Mendes, knows something we don’t know. Perhaps a multi-billionaire is planning to buy a club and invest hundred of millions?
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