Man City to be hit by devastating £95m tax blow – ‘this is a huge story…’
Man City will play at the Club World Cup alongside English rivals Chelsea in the inaugural hosting of the new-look tournament.
Fifa announced a headline-grabbing prize fund of $1billion (£754million) for the tournament last month – including up to £95million for the competition winners.
However, The Guardian has reported (18 April) that they are yet to negotiate tax exemptions for the 32 participating clubs – meaning they face paying millions of dollars in addition to dues in their respective countries.
Participants could pay state and federal taxes as well as tax in their home countries.
Everton’s former chief Keith Wyness – who served as CEO at Goodison Park between 2004 and 2009 and now runs a football consultancy advising elite clubs – has claimed Man City could see as much as 40% of that potential £95million windfall eroded by tax.
Tax twist ‘takes the shine off Club World Cup’, says Wyness
Speaking on the new edition of Football Insider’s Inside Track podcast, Wyness claimed the tax blow could “take the shine off” the competition for European clubs.
Chelsea and Man City will receive over £28million before tax and expenses just for playing their three group games – with the tournament set to kick off in mid-June.
Wyness claimed Fifa president Gianni Infantino, who was present at President Trump’s inauguration, will be lobbying hard to secure exemptions.
| Chelsea (ENG) | Bayern Munich (GER) | Porto (POR) | Juventus (ITA) |
| Man City (ENG) | Paris Saint-Germain (FRA) | Benfica (POR) | Atletico Madrid (ESP) |
| Real Madrid (ESP) | Inter Milan (ITA) | Borussia Dortmund (GER) | Red Bull Salzburg (AUT) |
He told Football Insider‘s Inside Track podcast: “This is a huge story.
“The World Cup next year is already tax exempt. But from what I understand, the Club World Cup was wrapped up so quickly that there wasn’t time to negotiate those exemptions.
“This extends through to every state, so there could be state taxes and federal taxes – as well as tax in the home country of the club.
“The headline story of the billion-dollar prize fund for this tournament is starting to disappear.
“You could be looking at 40% tax, depending on double taxation treaties.
“It’ll still be worthwhile, but nowhere near as lucrative.
“What I do believe is, we’ve seen volatility from Trump recently – I wouldn’t be surprised to see an executive order signed to say that this tournament will be tax exempt.
“I’m sure Infantino is in there lobbying, he was at the inauguration.
“If the tax is paid, and Trump may actually welcome the chance to bring the money in, it would take the shine off the Club World Cup.”
Man City identify ‘number one target’ to replace De Bruyne
Meanwhile, Football Insider has revealed (19 April) Florian Wirtz is now viewed as the “number-one target” to replace Kevin De Bruyne when the summer window opens.
City have identified four potential De Bruyne replacements including Phil Foden, Morgan Gibbs-White, Jamal Musiala and Wirtz.
Guardiola views Wirtz as the dream signing, but sources say Bayern Munich are the current front-runners and a deal could prove difficult for City to pull off.
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