Kieran Maguire: ‘Man City are battling PSG’ in transfer market as £22m deal explained
Man City will still be “battling the likes of PSG and Real Madrid” in the transfer market even if the Government introduces a transfer tax.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about the findings of Tracey Crouch MP’s independent review.
One recommendation in the 162-page document released on 25 November is the introduction of an independent regulator for English football.
This regulator would have the power to tax switches between top-flight and Football League clubs, as well as transfers with European teams.
The aim of the tax would be to address financial imbalances between the Premier League and EFL
But Maguire argues that big-spending City would not be significantly impacted by the introduction of a transfer levy.
“We have to determine how that tax will be treated for FFP purposes,” he told Football Insider correspondent Adam Williams.
“I think there will be lobbying for it to be excluded, otherwise clubs would feel disadvantaged.
“In terms of the long-term implications, I suspect it will actually lead to a softening of prices.
“If a club was going to sign a player for £20m and that is now going to be £22m with the tax, they may now only offer £18m with the £2m tax on top.
“To a certain extent, this is counterintuitive. If we want more money to filter down, this levy could bounce back with less money coming in transfer fees.
“For Man City, they are battling the likes of PSG and Real Madrid in the transfer market. I don’t think this will make them less competitive.
“This isn’t going to help them but it also isn’t going to hinder them greatly.“
City, who are 2nd in the current Premier League standings, have spent over £100million on new signings in each of the last three seasons.
Pep Guardiola’s side face high-flying West Ham in their thirteenth game of the campaign this afternoon (28 November).
In other news, Man City make decision on Nathan Ake transfer to Newcastle United.