Italian clubs take a hit, making signings gets difficult

Top Serie A clubs have taken a huge hit thanks to the new tax policy regarding foreign football players. The new tax policy will remove the growth decree in place since 2020. The growth decree allows tax benefits to foreign players. Banishing the growth decree will result in top foreign players not choosing Serie A clubs and going to other leagues. 

Why was the growth decree removed?

Luca Toccalini, the league’s lawmaker, reasoned that it is immoral for foreign footballers to earn millions while Italian footballers do not get picked by top Serie A teams. Toccalini said, “Discounts to foreign footballers earning millions are immoral, clubs should invest in young Italian players and not overpay foreigners who are also often bad (players).” 

The Decree aimed to reverse the decades-long brain drain from Italy by luring talented individuals, including athletes and accomplished professionals, to the nation. Both new foreign recruits and natives going home were covered by the rule, which allowed Serie A teams to sign players like Christian Eriksen, Romelu Lukaku, Cristiano Ronaldo, and a host of other players. Additionally, it made full use of the Decree, enabling coaches such as Antonio Conte to return to Inter after years away.

Impact of the new move

The decision to remove the decree faced a lot of backlash from top Serie A clubs. The growth decree is one of the very few attraction points for foreign players to come to Italy. The TV money in Serie A is already nowhere near its competitors nor does it have any modern stadium. After the removal of the growth decree, it is just the Italian fans whose passion could attract top players. 

Claudio Lotito, the President of Lazio called the move a dumb one. He said, “I’d like to see who wants to come here from abroad now. And the State will lose out too because it will get less revenue coming in. Lazio do not have any particular problems regarding contracts, but Milan, Juventus and Roma risk being destroyed by this type of situation.”

An Italian financial football website, Calcio e Finanza has reported that Roma has saved around $23m (€21m) in wages this season by using the Decree. Milan saved around $22m (€20m) and part of their ability to tie down star man Rafael Leao to a long-term contract was due to using the Decree. Juve saved around $18m (€17m), while Napoli $15m (€14m).

The Growth Decree will expire by the 31st of December which means that from the 1st of January, Serie A clubs will not be able to make use of the Growth Decree in the January transfer window. Many clubs proposed that they wanted the decree to be extended for at least one month.