Kieran Maguire: Man City could now seal wave of new signings on reduced contracts
Man City may take advantage of the UK’s new relaxed tax laws to sign players on reduced contracts.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about how Kwasi Kwarteng’s controversial mini-budget will help Premier League clubs attract more overseas talent.
The new chancellor has cut the top income tax bracket and has reversed a planned rise in national insurance.
The economy responded disastrously, with the pound falling to an all-time low against the dollar.
Markets have now stabilised, although the Bank of England was forced to intervene with a £65billion bond-buying fund to avert a financial crisis.
As relayed by The Independent on Wednesday (28 September), Kwarteng has vowed not to reverse the tax cuts.
Liverpool paid £355million in wages in 2021-22 and, as with every Premier League team, all of their senior stars sit well within the top tax band.
Maguire claims that the new tax laws will allow the club to offer reduced contracts whilst also ensuring that new signings get the same take-home pay.
“It will certainly help,” he told Football Insider’s Adam Williams.
“The Premier League’s TV deal being twice the level of that of France, Italy and Germany already enables the Premier League to outgun practically every other club in Europe on a gross basis.
“These changes as far as tax and national insurance will no doubt help clubs in terms of trying to attract talent.
“I’m sure clubs will perhaps give halfway, i.e offer a little bit less in terms of contracts but point out that clubs will be earning even more on a net basis.
“So, it’s a win-win deal as far as the Premier League is concerned. Whether this is the best for the UK economy is for somebody else to determine.”
In other news, Gabby Agbonlahor issues “big” Phil Foden claim after source’s near-£80m Man City reveal.