Simon Jordan says Premier League clubs and agents will take advantage of new tax cuts to boost transfers, as Cristiano Ronaldo and other high-earning stars are set to bring in an extra £240,000 a year following the ruling of the British government.

The UK Government’s tax and national insurance cuts are set to see Premier League players earn an extra £240,000 a year.

The tax is set to rise from 45% to 40% for the country’s highest earners after a move by Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng – and talkSPORT’s Simon Jordan says the change will be used by clubs and agents during the transfer. market.

AFP

England’s top aviation stars earn an average of £4million a year, and tax cuts – along with changes to National Insurance – will see their salaries rise dramatically.

The Premier League already offers the best average salary for players, but has no special tax regime for foreign players unlike Italy, France, the Netherlands and Belgium.

But the changes could now be used as a selling point for players looking to move to England, and as further persuasion for others to join.

“Taxation can be an issue when negotiating transfers, as players want to know their net income,” a club executive told The Times.

“So I’m sure the tax cut will make the Premier League more attractive.”

That view was echoed by talkSPORT pundit and former Crystal Palace chairman Jordan, who said agents would look to use the new tax rates to their advantage when making deals.

Getty

The White and Jordan host said: “If you’re an agent who wants a player to go to a club because that club has already suggested you take care of yourself, [you’d push that deal through].

“But, if then the player has a mixed mindset about it, then the agent and the club can talk about the benefit of a reduced taxation system. [in the Premier League] compared to the rest of Europe.

By comparison, players in Germany are taxed at 45%, meaning players like Manchester City’s Erling Haaland will see a big boost in income after he leaves Borussia Dortmund this summer.

Meanwhile in Spain, players are taxed between 43 and 47%.

Getty

Football finance author Kieran Maguire has calculated how Cristiano Ronaldo, the league’s biggest winner and Manchester United star, would benefit from the cuts.

While earning his current salary of £400,000 a week, the Red Devils hero is set to see a further £1.3m added to his net income.

On top of that, a study by accountants EY found Premier League players paid £1.4billion in direct taxes from 2019 to 2020.

Now that sum will drop by £70million.