Have you noticed how some of the best players in the world, playing in England Javier Mascherano of Liverpool, Robinho at Manchester City and even Andrei Arshavin who had barely even finalized his transfer to Arsenal himself, have all been casting their eyes at Spain? Barcelona was the common denominator in each of their longings, but Real Madrid has its own suitors: Xabi Alonso, Cristiano Ronaldo, and Karim Benzema.
Well, it's because of a Spanish government tax break that until recently gave foreign-born players who were signed by Spanish clubs a tax break on their earnings from the projected 43% of earnings over 600,000 euros to 24%. For leagues like England, Italy and France, that pay in the mid 30% range in euros for similar earners, the Spanish League has had an unfair advantage since this "Beckham Law" took place. Yet, Spain is (as usual) one of the hardest hit from the crushing recession that has hit global markets. Unemployment is near 17%, tax evasions are increasing and pressure from the left to level the playing field, caused the Zapatero government to begin the process to repeal the tax break.
The football league came out and threatened a strike. Testing public opinion. Very few came on the side of the owners, players and league officials. They decided to wait and see if they could get concessions (renegotiate television deals, sponsorships, etc.) to soften the blow of the tax hikes. It may yet happen though, November 19th is the cut-off date.












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