Football clubs refusing to cut player salaries in coronavirus crisis should be slapped with extra taxes, MPs demand

PREMIER League clubs that refuse to cut the multi-million pound salaries of their players during the coronavirus crisis should be hit with a windfall tax, a powerful group of MPs have suggested.

The powerful Commons Culture committee blasted clubs such as Tottenham, Newcastle, Bournemouth and Norwich for living in a “moral vacuum” by taking advantage of the Government’s taxpayer-funded job retention scheme.

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Clubs have been threatened with more taxes by MPsCredit: PA:Press Association

The clubs have placed a number of their non-playing staff on leave, meaning 80 per cent of their wages will be paid by the taxpayer, while so far continuing to pay their players their full multi-million pound salaries in what has been described a ‘two-tier’ system.

The Government scheme is designed to persuade employers not to lay off their staff during the shutdown and to keep workers attached to their place of work so they can restart immediately after the restrictions are lifted.

The state will cover 80 per cent of the wages of furloughed staff during the lockdown period – up to a maximum of £2,500 per month.

Culture committee boss Julian Knight has written to the Chancellor Rishi Sunak to propose imposing a levy on Premier League clubs that have not cut their players’ salaries by April 7.

He said this would “recover a substantial proportion of the money that clubs are paying to players”.

And this could then be used to reimburse non-playing staff and to help grassroots football, including non-League and women’s football, to get through the coronavirus crisis.

The Tory MP has also written to the Premier League urging them to learn the lessons from the continent, where clubs such as Barcelona, Juventus and Bayern Munich have reached agreement with players to take pay cuts for a set period.

He said non-playing staff keep Premier League clubs in business and it was “deeply unfair that these staff should take less money home while players retain their full salary”.

Mr Knight wrote: “The purpose of the Coronavirus Job Retention Scheme is not to support the economics of Premier League clubs, who should play their part in dealing with this crisis and set a good example.

“Lessons should be learnt from European clubs including Bayern Munich, Juventus and Barcelona where players have all agreed to take pay reductions If PL clubs insist on maintaining this current two-tier strategy, they should face sanctions.”

Newcastle was the first Premier League club to announce it would take advantage of the job retention scheme, placing all of its non-playing and coaching staff on leave.

Tottenham chairman Daniel Levy, who earns around £3 million a year, also announced that the club’s 550 non-playing employees will see their wages cut after saying he will be applying for the Government’s furlough scheme.

Launching a furious attack at the Premier League clubs who have failed to take any action so far, Mr Knight said: “It sticks in the throat. This exposes the crazy economics in English football and the moral vacuum at its centre.”

In contrast to the Premier League, players at Championship club Leeds United have already volunteered to take a wage deferral while Birmingham City players who earn more than £6,000 have been asked to take a 50 per cent pay cut for the next four months.

And in Spain, Barcelona players have agreed a 70 per cent pay cut while in Italy Juventus players and manager Maurizio Sarri have had their pay frozen for four months.

The Professional Footballers’ Association has written to all of its members urging them not to agree to any reduction or deferral in wages until they have spoken to the union.

The PFA said in the letter:”The PFA requested to see each club’s financial situation before we offer advice to players on whether to accept the terms offered.

“Before accepting or signing any paperwork from your club, it is vitally important that squads collectively discuss proposals with the PFA.”

The Premier League, EFL, PFA and League Managers’ Association said they held a “constructive meeting” on Wednesday “regarding the challenges facing the game”.

In a joint statement they said: “The meeting reiterated that the overriding priority is the health and well-being of the nation – including that of players, coaches, managers, club staff and supporters – and everyone agreed football must only return when it is safe and appropriate to do so.”