BLOG

Thoughts on salary cap and good advice

The passion for one color or another cannot prevent us from seeing football for what it is: a business with legal aspects of a contractual nature that clearly affects the socioeconomic order.

In the transfer market scenario, it is important to try to avoid behaviors by managers that are based on irrational impulses, and it is appropriate to analyze seriously and calmly whether a player can fit into a certain team both for the sporting aspect and for the legal aspect.

These days there has been talk about the concept of "salary limit" in the LFP law due to the fact that some teams have not been able to register players, which caused the last week of August plagued by countless comments and hypotheses.

Leaving aside the fact that the "salary limit" is not the same for all LFP teams, and that the distribution of economic resources is certainly questionable from an equity perspective, the reality is that it would be advisable for both clubs and players ( who are the workers of the clubs) had expert advisers in Sports Law who could guide them legally and financially on the viability of the transfers they intend to make.

However, it is to highlight the concept of "salary limit" which is born from the LFP Budget Preparation Regulations, and specifically from article 38 that regulates the definition of registrable staff, but this in literal and systematic interpretation with articles 39 And next.

Reading and understanding said articles is complex even for lawyers and jurists, and hence when the regulations are interpreted by people outside the legal profession, frankly unfortunate comments and news are undoubtedly generated.

In any case, the will of the regulations is to avoid the economic chaos that reigns in different clubs and SADs that borrow beyond their means to incorporate certain players, and sometimes this causes the sports entity to lose the category due to non-payment.

The purpose of the regulations that regulate the preparation of budgets is clear: to seek a point of balance (arts. 42 and 43), demanding absolute good management of the economic situation of the entity (which can be in the form of a club or in the form of a legal SAD).

Therefore, what the regulations seek is that clubs and SAD have a healthy and transparent economy, and in this way if the players are well advised by competent people in the legal and economic fields, situations of not being able to register players due to economic problems more characteristic of regional football than of professional football.

​The importance of good advice is key in the world of athletes, because as we have seen in other previous articles, sometimes it is the players' own advisers or those who help commit tax offenses and even tax crimes.

< BACK TO THE BLOG

COLLABORATORS / SPONSORS

We are open to collaborations with other entities and brands that can provide us with value and service for our clients. Do you want to collaborate with us?
I WANT TO COLLABORATE
Carolina Morales López

SPECIALIST LEGAL SERVICES FOR FOREIGN ATHLETES: IMMIGRATION AND NATIONALITY

We offer legal advice both for national athletes (taxation, accounting, investment) and for international athletes (residence permit in Spain, work permit in Spain, international visa management) and all at the expense and thanks to the Lawyer of our firm specialized in Immigration and Nationality:

Carolina Morales López
Lawyer
Whatsapp: 679 528 568
Email: carolinamoraleslopez@icab.cat