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LFP chief says tax demands are not disrespectful

March 4, 2010

Liga National de Futbol Profesional (LFP) chief executive Francisco Roca has insisted the body's demands for better tax rates across football are not insensitive in the country's current economic plight.

The LFP is attempting to persuade the government to lower its VAT rate on football clubs from 16% to 7% by reclassifying football as part of the entertainment industry.

However, with unemployment in Spain having more than doubled to 20% over the past three years, Roca has acknowledged the timing of the LFP's demands could seem churlish.

Roca said: "Other entertainment industries have lower VAT so why not us? I won't dispute that it's not an ideal time to do this, but we've been discussing this for many, many years.

"It might seem like we're coming out of the blue with this and of course it doesn't look good because Spain's wider economy is in crisis, but we've been trying to do it for some time."

Roca added that the contribution of the football industry to the Spanish economy should not be underestimated.

It is thought that the game supports around 85,000 workers in Spain.

"It shouldn't be forgotten that football generates at least 1% of Spain's GDP. That is quite a lot," he added. "They (the government) should be helping us. The least they can do is not put any additional difficulties our way."

Since January 1, Spanish football clubs have also been unable to call upon the so-called 'Beckham Law', which allowed foreign players to avoid being taxed on their earnings outside Spain.

For Roca, the loss of the Beckham Law has represented a further financial setback for the Spanish game.

"It came as a big shock that the government decided to change the tax laws in the middle of the competition," he said. "You would expect any changes to happen after the end of the competition following discussions with the league, but it just came in suddenly. We're talking to the government about that and telling them about how difficult the situation is."

Francisco confirmed the claim of Sevilla executive Jose Maria Cruz Andres on Tuesday that "around six clubs" are in serious danger of bankruptcy in Spain.

In the latest Deloitte Money League, Real Madrid and Barcelona were the top two revenue-generators in European football, but no other Spanish clubs featured in the remainder of the top 20.

Clubs are currently free to negotiate their own TV deals for live matches - a system that has helped to elevate Real and Barcelona way above their domestic rivals.

However, having acknowledged that collective selling of broadcast rights would help to close the financial disparity between the top and bottom of the table, Roca claimed that the League's hands are tied.

"If we tried to apply collective rights selling, two teams - and I don't think I need to name them - would go to court and get back the individual rights anyway," he said.

"It is very difficult to bring in collective rights without changing the system by using legal avenues. I have no doubt other leagues in Europe have higher income than Spain due to their collective rights."