Politics May Prevent Ligue 1 from Competing with the Rest of Europe

It is a rare occasion when a political election has a major impact on a sport. The results of the French Presidential election may be one of those rare occasions. The election, held on May 6th, saw Socialist Party candidate Francois Hollande defeat incumbent Nicolas Sarkozy. The result has many in the French soccer community worried about the possible future of Ligue 1.

During his campaign, President Hollande laid out a tax plan that would tax France's top earners a tax rate of 75 percent for economic recovery. His plan would see those who earn greater than €1 million taxed at 75 percent, and 45 percent on those who earn more than €150,000. Both groups pay 41 percent under the current tax laws.

Hollande also took shots at the teams in France, questioning if the level of play in the French league was actually worth the salaries paid. French league president, Frederic Thiriez, estimated approximately 25 percent of the players in Ligue 1 would be affected by the proposal. Thiriez told L’Equipe the proposal would be “the death of French football."

The fear for Ligue 1 is an exodus of its high-paid talent. With England, Spain, Italy, and Germany having tax rates between 40-52 percent, the lure of playing in another league would become more appealing. France is constantly raided by other leagues for its young talent. Ligue 1 is already at a disadvantage compared to the wages paid in England, Spain and Italy, as the enhanced revenue of those leagues due to TV contracts and other endorsements gives them the upper hand in attracting better players.

With a 75 percent tax, teams would have to pay top players nearly two-and-a-half times more for them to bring home the amount they currently make. PSG is the only team in Ligue 1 with the financial backing to afford paying such high salaries. If such a tax is implemented, teams will be searching for any loophole they can find in an effort to stay relevant.

In the end, politics may deal a blow that could cripple Ligue 1 for the foreseeable future. An exodus of talent will only lead to a lower quality product on the field. If the quality on the field is lower, the ticket sales, endorsement dollars and TV revenue will dwindle. All in all, it is a worst-case scenario for a proud league. It is unfortunate that political decisions may push Ligue 1 to the brink.