Question about Spanish buy out clauses

futbol wrote:I doubt anyone here can give you a definitive answer. The specific tax law situation isn't so clear for people who aren't Spanish tax law experts (and even then there wouldn't be many precedent cases). The established opinion is that if a club refuses to talk, the player has to buy himself out of his own contract. Which means pay the sum that is written in his contract from his own pockets. Now since even footballers (other than absolute superstar players at top 5 clubs) rarely have € 50M+ cash lying around, the buying club would transfer the money to the player who then buys himself out of his contract with that money. But then the transfered money will be taxed as income (don't know if it's 50 % in Spain). There might be loopholes though which I think Bayern used during the Martinez sage. For example it is not clear whether the buying club can deposit the money at the football federation instead of giving it to the player which might change the whole income tax situation. Maybe Hans knows more how Bayern did it with Martinez (although I doubt it, Hans usually knows nothing).

Mind you, this is only a problem if the selling club refuses to talk alltogether. Atletico could also accept less than the official buyout fee, like € 50M, if they accept to sell.

free_cat wrote:

If you want to read an article with your new spanish about Javi Martinez's case, here they are:

http://hayderecho.com/2013/07/31/illarramendi-thiago-javi-martinez-traspaso-de-un-jugador-o-pago-de-su-clausula-de-rescision/
http://www.iusport.es/images/stories/opinion/guillermo-amilibia-tributacion-javi-martinez.pdf

Mr Nick09 wrote:We paid the VAT when we signed Illarramendi from Real Sociedad. that's why his price went from 32 to almost 40 millions, those were taxes. they are not often included in the price for players but La Real were happy to report the deal with the larger sum to appease their fans and make it look like they got us. Actually the sticking point of that transfer was the fact that they were refusing to accept a settlement and forced us to activate the clause.

My understanding is the same as Futbol, if you want to avoid the VAT and the other tax (there are two taxes when activating a release clause), the player has to pay it himself or you can agree to a normal amount with the club. Although i believe VAT is only a tax that applies to Spanish club, which is one of the reason why Bayern got away with wiring the funds to Javi, iirc

Mr Nick09 wrote:We paid the VAT when we signed Illarramendi from Real Sociedad. that's why his price went from 32 to almost 40 millions, those were taxes. they are not often included in the price for players but La Real were happy to report the deal with the larger sum to appease their fans and make it look like they got us. Actually the sticking point of that transfer was the fact that they were refusing to accept a settlement and forced us to activate the clause.

My understanding is the same as Futbol, if you want to avoid the VAT and the other tax (there are two taxes when activating a release clause), the player has to pay it himself or you can agree to a normal amount with the club. Although i believe VAT is only a tax that applies to Spanish club, which is one of the reason why Bayern got away with wiring the funds to Javi, iirc