Premier League clubs using furlough scheme need to pay extra tax on players' wages
Govt official expressed dismay at the decision of certain PL clubs to furlough non-playing staff while continuing to pay players
London: Premier League clubs that use government money for the salaries of non-playing staff, while continuing to pay players their full wage could be hit by a new tax.
Julian Knight, who chairs the British Government's Digital, Culture, Media and Sport Committee, expressed his "dismay" at clubs using the government's furlough scheme which will guarantee 80 percent of salary for staff members up to a maximum of 2,500 pounds ($3,000) a month.
Tottenham, Newcastle and Norwich have so far said they will use the scheme for non-playing staff, although Norwich will top up the government's contribution to ensure 100 per cent of salaries are paid.
The Premier League is in discussions with the Professional Footballers' Association (PFA) but no cuts have so far been agreed for players' salaries.
"I am writing to express my dismay at the decision of certain PL clubs to furlough non-playing staff while continuing to pay players. This two-tier system is morally wrong," said Knight in a letter addressed to Premier League CEO Richard Masters.
"The purpose of the Coronavirus Job Retentions Scheme is not to support the economics of Premier League clubs."
Knight has proposed a "financial redress" where the Exchequer recoups a proportion of the money clubs pay to the players if there is no change of approach.