Salient to Investors:

Monaco’s sudden, substantial and remarkably efficient spree has grabbed the attention of the soccer world.

Monaco and its tax-free status have attracted big-name players in the past. While the economic downturn is hitting clubs hard, and a new 75% tax rate for top earners is about to be enforced, the fiscal advantages afforded to Monaco’s foreign players are grating more than ever. Paying a foreigner a net annual salary of 1m euros will cost Monaco 1.05m euros, compared with the 3.19m euros other clubs will have to pay.

The French League took action in March, restricting admission to Ligue 1 to clubs whose headquarters are located in France for tax purposes. Monaco have refused to comply, launching legal proceedings. A ruling is expected on 20 June.

Monaco has existed as a tax haven since 1869, though fiscal exemption was restricted to non-French nationals in 1963, and the club has been participating in the French leagues for more than a century.

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