Finance guru: Liverpool behind held to ransom as ‘English tax’ analysed
The relaxation of the GBE points system would mean foreign transfers would be less expensive for Liverpool – but that does not mean they will be exempt from the so-called “English tax”.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the possible softening of the post-Brexit governing body endorsement framework.
Britain’s exit from the European Union means UK clubs are no longer free to sign under-18 talent from the continent, with rising stars now required to meet the FA’s 15-point GBE threshold.
Analysts suggest that this is one reason that Premier League transfer expenditure, which totalled £1.9billion last summer, has ballooned in recent years despite the impact of the pandemic.
But The Athletic reported last Monday (3 October) that the FA are beginning to be more open to the idea of softening the GBE system.
The governing body has previously wanted English clubs to shop at home in the interests of the national team, but it is claimed that they have wavered amid unanimous support for the relaxation of GBE in the Premier League.
Plumley claims that, while the above would drive fees down, it is not the only factor that has led to such extraordinary levels of spending from Premier League clubs.
“Logic would dictate this will lead to cheaper transfers,” the Sheffield Hallam University expert told Football Insider’s Adam Williams.
“It’s almost like basic economics. In theory, the more you restrict supply, the higher the price goes up. If you remove some of those restrictions, the price should come down. That’s what we’re looking at here.
“That probably benefits the big clubs.
“There is still the problem that selling clubs know how much money English clubs have got. It’s that English tax we’ve talked about over the years.
“That will still come into it, but I think they would come down if the pool is opened up.”
In other news, ex-Fifa official tells authorities to intervene as Liverpool are victims of Diogo Jota injustice.