Italy are seriously considering scrapping the Growth Decree for football – although there could be measures that mitigate the effect on clubs.
This according to today’s print edition of Italian business newspaper Il Sole 24 Ore, via FCInter1908.
For several years, teams in Serie A have been able to benefit from the Growth Decree.
The policy is an economic incentive to bring foreign workers to Italy.
Essentially under the Growth Decree the tax rate on wages of certain eligible workers, are lower.
The ramifications for football have been significant. Teams in Serie A, particularly those at the top, have been able to make big name signings without spending as much as they otherwise would have.
In other words, clubs’ gross expenditures on the net wages of certain players from abroad has been lower.
For Inter, the signings of French international duo Marcus Thuram and Benjamin Pavard this summer has been an example of a team being able to apply the policy.
Meanwhile, the Nerazzurri’s city rivals AC Milan applied the Growth Decree to three of their summer signings. All of Christian Pulisic, Ruben Loftus-Cheek, and Tijani Reijnders arrived from abroad.
Juventus brought in US international Timothy Weah from Lille. And Roma signed the likes of Houssem Aouar and Evan N’Dicka on free transfers.
Italy Likely To Scrap Growth Decree For Football
According to Il Sole 24 Ore, however, the Italian government is now strongly considering getting rid of the policy for football.
The effects would be obvious.
This could be a blow for top sides in Serie A having the ability to sign big name players.
But on the other hand, Il Sole 24 Ore report, Sports Minister Andrea Abodi is also working on some compromise solutions.
Firstly, the change of policy should only take effect next January. Therefore, it would not be applicable to signings from this past summer.
And moreover, it could continue to apply to players whose contracts are extended, for no longer than five-year deals.
