Football clubs speak out against tax reform and fear impact on investments

by Andrea
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Leaders emphasize that the reform can directly impact sports planning, affecting investments in youth categories, improvements to stadiums and the signing of new athletes

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Botafogo warned that the changes could harm the management model of so-called ‘company clubs’

Brazilian football clubs expressed their opposition to the proposed raising concerns about the possible effects on investments and the financial health of institutions. O, who recently won the warned that the changes could harm the management model of so-called “company clubs”, alienating potential investors and generating negative repercussions in several areas. The directors emphasize that the reform can directly impact sports planning, affecting investments in youth categories, improvements to stadiums and the signing of new athletes. For smaller teams, which rely heavily on investors, rising costs can be especially damaging, compromising their sustainability.

The note released by the clubs highlights that the creation of the Sociedade Anônima do Futebol (SAF) made it possible to implement a business model in football management. In a period of less than three years, 95 clubs have transformed or been founded as SAFs, and currently, around 40% of Serie A teams operate under this format. The legislation that regulates SAFs establishes a Football Specific Taxation Regime (TEF), which requires that 5% of revenues be collected monthly. However, a report being debated in the Chamber of Deputies suggests maintaining the 8.5% rate for SAFs, which has generated even more apprehension among clubs.

Published by Sarah Paula

*Report produced with the help of AI

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