That Was Quick: Spanish Supremacy In Danger.

By: chris | November 5th, 2009

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While all were oohing and aahing over Barcelona’s sex on a pitch football and the free-spending ways of Florentino Perez returning to Madrid, the biggest difference maker in Spanish football was lurking under the Spanish limelight. In fact it was lurking so far under the Spanish limelight it was in Britain.

That, you see, is where the big money was for footballers. But that changed with tax hikes (implementation upcoming) for the big money makin’ Premiership footballers (along with those well beyond the purview of poverty). That’s about to change again, as the Beckham Law, which stipulates wealthy foreigners pay only 25% tax as opposed to the Spanish norm closer to 45%, may be yanked.

This was one of the biggest reasons for the perceived transition of supremacy from England to Spain. Barcelona is, was and may be at the end of the year again the best team in the land, but the financial future was firmly in Spanish hands. Now those same clubs which were eying a Spanish future may be eying a rocky future.

In the near future, this would mean most clubs who use the standard practice of negotiating contracts in net pay rather than gross will suddenly see their wage bills swell – 20% ain’t a small number. The reported figure is a quick and easy €100m across La Liga; fine for the likes of Barca and Real Madrid, but not so much for clubs toeing the fine line of financial balance (many).

Also in the near future, Jermaine Pennant will be transfer listed.

In the distant future, it could halt the shift of power from England to Spain. This tax difference gave clubs an extraordinary advantage over the likes of England and Italy in the contractual realm. That advantage could be wiped with a swift hand and Premiership clubs, despite the tax hikes, haven’t exactly shown an extraordinary degree of financial prudence. Spain, arguably the hardest hist of the major leagues by the global financial crisis, may have no choice but to ease the reigns. Many will still want to ply their trade with or against the Spanish Big Two, but many more will flock to the money. (This is where Jermaine Pennant pops up and says hello.)

Another slight problem? La Liga have threatened to strike should this go through for January 1st.

Nothing halts the progress of supremacy like not showing up.