DOES AS MONACO HAVE AN UNFAIR ADVANTAGE IN LIGUE 1?

Most soccer fans across the globe are aware of the impact that big money owners such as Roman Abramovich and the Oil tycoons from the Middle East have made on the game. While deep pocket owners such as these have definitely distanced their clubs from the rest of the pack, Ligue 1 faces a different problem.

New money has been injected into clubs Paris Saint Germain and AS Monaco. AS Monaco was recently purchased by Dmitry Rybolovlev a Russian Oligarch. Now in it's first season back in the French first division, AS Monaco join fellow big money club PSG there and have spent over 115 million Euros this summer attempting to secure a Ligue 1 title this season. Monaco does retain one advantage that PSG does not have. AS Monaco may play in the French first division but the team is from the small independent city state of Monaco. Monaco has long been considered a tax haven. While Monaco has a population of just over 35,000 it has 0% unemployment and no income tax. Sound great? The world's best players might agree with you. It has become a refuge for some of the worlds wealthiest.

France on the other hand boasts taxes on the wealthy that can exceed 100%. AS Monaco has seen plenty of success in the past. They even progressed to the Champions League final a few years back. Still the tax issue has never been seen as overly serious. That is, until now. Now that Monaco boasts not only no taxes on it's players wages but also seemingly limitless spending ability, the rest of Ligue 1 is speaking up. Who can blame them? With the money, tax advantages and beautiful beaches, who wouldn't want to play there?

The story does not end there. With the coming of Rybolovlev's deep pockets the rest of Ligue 1 decided they had had enough. The New York Times quotes Frédéric Thiriez as saying "It is therefore all the more important that the club adheres to French rules, especially in relation to tax, so that every club in the league is on a level playing field.”. AS Monaco haven't seemed to like this idea and have been strongly averse to any other compromises mentioned. So, it looks as though this issue will continue to be a problem for awhile. But Monaco face other problems such as small stadium and fan base. With so many big name players such as Falcao, Carvahllo, Abidal, Moutinho and Rodriguez, It will be interesting to see what AS Monaco and their big spending owner do to cope with these mounting problems.

Of course AS Monaco's return to Ligue 1 doesn't only bring problems. There are upsides to the former Champions League finalist returning to Frances top division. Monaco's newly purchased superstars and money to spend will attract attention to the French league. Along with PSG, Monaco could help French soccer to succeed in the Champions League (PSG made it to the quarter finals last season.) and gain important exposure.

Regardless of the team's success it is an interesting conundrum. One that you probably wont be able to find anywhere else in world sport. Overall, I think the perks of tax free wages do provide AS Monaco with an unfair advantage over the other Ligue 1 teams. Although, with all of its advantages, Monaco's tiny stadium and fan base cause cause major obstacles on the road to success. Either way a solution will be hard to find. We will all just have to wait and see.






http://www.telegraph.co.uk/sport/football/european/10250930/Money-cant-buy-Monaco-love-as-tax-battle-looms.html


http://www.nytimes.com/2013/06/24/sports/soccer/the-tax-haven-team-in-monaco.html?pagewanted=all&_r=0