Recently, Italy confirmed that the "Tax Growth Decree" will be canceled from January 1, 2024, which has attracted widespread attention from all walks of life in Serie A. The move means that Serie A clubs will face more financial pressure, and will also affect the salary structure and transfer strategy of players. This is not only a financial test for the club, but also a major adjustment to the future direction of the entire league.
First of all,The abolition of tax incentives will directly increase the financial burden on the club。Serie A has a different salary structure than the Premier League, where Serie A clubs usually bear the tax burden on players, so the public coverage of after-tax wages is actually the total cost borne by the club. The removal of the tax credit means that clubs will have to pay higher pre-tax wages for players, which is undoubtedly a heavy burden for many clubs. Especially for those small clubs who are not financially well-off, this is undoubtedly worse.
For players, the removal of tax incentives will also affect their salaries and transfer options. For example, in the case of the contract extensions of Inter players Dumfries and Dimarco, Inter Milan had to consider more cost factors in salary negotiations due to the removal of tax incentives. This will not only affect the player's personal income, but it may also lead to some volatility in the transfer market. For example, some players who could have enjoyed tax benefits may choose to move to a league in another country in search of a higher net income.
However, the abolition of tax incentives is not without its positive aspects. It could prompt Serie A clubs to place more emphasis on the development of young homegrown players. As agent Pastoreello has pointed out, the removal of tax incentives will encourage clubs to pay more attention to their own players, which will be beneficial for the long-term development of Italian football. In the Bundesliga and Ligue 1, there are no tax benefits, but this does not prevent the healthy development of these leagues. In fact, this could be an opportunity for Serie A to transition to a more balanced and sustainable development.
For a club like Inter, the removal of tax incentives is undoubtedly a challenge. Clubs need to rethink their financial strategies and team building directions. Inter are already preparing to deal with the change, but it will undoubtedly have an impact on their transfer strategy and salary structure in the short term. Inter may need to rely more on the youth system and look for more cost-effective players in the transfer market.
In summary, the abolition of tax incentives is a major challenge for both Serie A clubs and players. This is not just a financial issue, but a major test of the future direction of the league. But at the same time, it is also an opportunity, an opportunity for Serie A to shift to a more sustainable level. Hopefully, in the process, Serie A will find a new balance and continue to maintain its status as the world's top league. At the same time, I also hope that ** can give more understanding and support to this process, and witness a new chapter of Serie A together.