The Malaysian Insider :: Sports
The Malaysian Insider :: Sports |
| French football clubs plan “historic” strike over 75% tax plan Posted: 24 Oct 2013 08:57 AM PDT French football clubs will go out on strike for the first time in more than 40 years next month in protest at government plans to tax top earners 75%, the clubs announced on Thursday. The first lockdown in the professional French game since 1972 is scheduled for the last weekend of November after a unanimous vote against Socialist President Francois Hollande's controversial supertax initiative. The president of the French professional clubs union (UCPF), Jean-Pierre Louvel, said: "We are involved in a historic protest and have a real determination to save football by having a weekend without games at the end of November." Clubs in France's first and second division - Ligue 1 and Ligue 2 - were "confirming their firm opposition to the 75% tax proposal" on annual incomes over one million euros by staging a walk-out between November 29 and December 2, he added. Under the proposals, companies rather than players would be liable to pay the high tax rate on the part of their employees' salaries that exceed one million euros. Louvel said clubs, concerned that their ability to attract high-earning top players from abroad to play in France will be hit, would open their doors to fans to explain to supporters why they needed to take such drastic measures. But whether they will win the backing of fans is debatable, with public perception of footballers currently near rock bottom. A recent poll suggested that 82% of those questioned had a poor image of the national team, three years after Les Bleus' calamitous World Cup campaign in South Africa, which was marred by a players' strike against the manager and an early exit from the competition. Prime Minister Jean-Marc Ayrault's office said in a statement that football clubs "were businesses like any other", while the French Communist Party immediately labelled the club's strike plans as "outrageous lobbying". Talks between the clubs and Hollande are scheduled to take place next week. Thursday's announcement follows last Friday's parliamentary vote to include the 75 percent tax rate in next year's budget. The bill was a major plank of Holland's 2012 presidential election manifesto and previously made headlines when actor Gerard Depardieu decided to take up residency in Belgium in protest. The proposal will now go before the upper chamber of parliament, the Senate, before returning to the lower chamber National Assembly for a final reading. According to Ligue 1 teams, the new bill, if implemented next year, would leave them with an 44 million euro tax bill. That forecast is based on the highest salaries of around 120 players from 14 clubs in the French top flight, according to statistics seen by AFP. Jean-Michel Aulas, president of multiple former French champions Lyon, described the new tax as "unfair". "It's an anti-labour tax. This proposal is retroactive, we're being taken hostage," said Aulas, whose club's fixture with Paris Saint-Germain will be one of the games lost on the strike weekend. Louvel criticised Ayrault's claim that football clubs would be treated like other businesses. "Look at the drama which football is experiencing, we are the only country which taxes companies that are losing money," he said. "I want our protest to change politics concerning this situation." According to official French football figures, the combined loss of France's first and second divisions in 2011-2012 amounted to 108 million euros. Louvel, who is also president of division two side Le Havre, warned that unless next week's top level discussions bore fruit, the strike would go ahead. "If there is no agreement, by agreement I want to hear words that translate into actions - with the President of the Republic we will continue the actions in whatever way." - AFP, October 24, 2013. |
| India’s Supreme Court to hear demand to cancel F1 race this weekend Posted: 24 Oct 2013 07:55 AM PDT "We will hear the petition tomorrow," Chief Justice P. Sathasivam said in court, announcing a new legal snag for Formula One in India which has been dogged by problems since the inaugural 2011 event. The Supreme Court, which has executive powers, ordered organisers two years ago to freeze 25 percent of ticket revenues until they had settled a tax dispute with the state where the racetrack is located. That ruling came in response to Public Interest Litigation filed by campaigner Amit Kumar, who is also behind Thursday's petition seeking cancellation of the race on Sunday. Kumar successfully argued in 2011 that Formula One was entertainment and not sport, and should not benefit from tax exemptions granted by the state of Uttar Pradesh which borders the capital New Delhi. Entertainment tax, applicable for large-scale shows and sponsored festivals, has been levied on tickets this year for the first time. Vicky Chandhok, head of the Federation of Motor Sports Clubs of India, said he did not foresee the race being cancelled. "I don't think the court case will affect the event at all," he told AFP. "I am certain it will go ahead as scheduled. Such cases are not uncommon in India." A spokesman for circuit owner Jaypee Sports International Limited acknowledged previous tax problems in 2011 and said they were ready to comply with any order. "We will wait for the court's directive this time around as well. Whatever the court says, we are ready to follow," Askari Zaidi told AFP. Asked about the claim that taxes had not been paid last year, he replied: "Why should we comment on somebody's allegation?" Formula One supremo Bernie Ecclestone had already removed India from the 2014 schedule, leaving the future of the event at the $450 million Buddh International Circuit in doubt. After initially citing "logistical" problems, the billionaire was quoted in July as saying that "political" reasons caused India to miss out next year -- believed to mean the lack of government support for his private empire. Chandhok's son Karun, a former F1 driver, expressed frustration at bureaucratic problems overshadowing the contest and said it cast India in a negative light. "I think brand India is getting affected. People should not underestimate the power of F1 and power of sport," Karun Chandhok told the Press Trust of India news agency. "For the teams and drivers it is a big headache to reach here... you need to have an extra lawyer for the Indian GP," he added. "The bureaucratic process is so big and it should not be." Red Bull driver Sebastian Vettel was expected to seal the world title in Sunday's race, with local motorsports enthusiasts hoping that a successful contest could improve the chances of an Indian GP in 2015. "With venues in other countries also fighting for slots, we can't afford to miss out in 2015," Vicky Chandhok said earlier in the day. "But I am optimistic that the promoters will work out an agreement with Formula One to have two more races. We have a great facility here," he added. Jaypee Sports International Limited, which stands to lose the most if the race does not return, insists that it will be back in 2015. The lavish F1 roadshow rolled into Greater Noida, a burgeoning satellite of New Delhi, in 2011 and its slick organisation helped erase some of the memories of the chaotic Commonwealth Games of the previous year. But while the inaugural race drew 95,000 spectators to the 100,000-capacity circuit, numbers fell to around 65,000 last year. Sluggish ticket sales this year could see figures drop further. - AFP, October 24, 2013. |
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