!! History Commons Alert, Exciting News

Context of 'November 4, 2009: Spanish Government Announces ‘Beckham Law’ Soon to Be Repealed'

This is a scalable context timeline. It contains events related to the event November 4, 2009: Spanish Government Announces ‘Beckham Law’ Soon to Be Repealed. You can narrow or broaden the context of this timeline by adjusting the zoom level. The lower the scale, the more relevant the items on average will be, while the higher the scale, the less relevant the items, on average, will be.

The European Union announces it has begun a preliminary investigation into the sale of Real Madrid’s training ground to the city council in 2001 (see (May 8, 2001)). The sale netted €480m, which wiped out the football club’s €290m debt and enabled it to buy players such as Zinedine Zidane, Ronaldo, Luis Figo, and David Beckham. “We believe Madrid’s regional authorities may have overpaid,” says Tilman Luder, the EU’s competition spokesman. He also warns that the club may have to pay back some money if the price exceeded the market value. “We have sent a questionnaire to the Spanish government: to find out why they bought this land, at what price, and if they can prove it was at the market price. We suspect that the purchase price was influenced by the fact that this property had been reclassified, which increased its value,” says Luder. If Spain’s response to the questionnaire is not satisfactory, the EU may launch a formal investigation. [Independent, 3/4/2010] The EU will later drop the matter (see (November 9, 2004)).

Entity Tags: Tilman Luder, Real Madrid Club de Fútbol, European Union

Timeline Tags: Football Business and Politics

The Spanish government passes what will become known as the “Beckham Law.” The law grants a tax break to wealthy foreigners earning over €600,000 who work in Spain—they will pay only 24 percent income tax, whereas Spaniards earning the same amount pay 43 percent. The initial aim is to attract talented executives, but the biggest effect is on Spanish football, as the tax break allows Spanish clubs to attract high-paid players from elsewhere in Europe where there are higher tax rates. The law gets its nickname from Real Madrid midfielder David Beckham, who joined the club shortly before the tax break came into operation. A later Spanish administration will announce the end of the law’s application (see November 4, 2009). [Xinhua News Agency (Beijing), 11/4/2009]

Entity Tags: David Beckham

Timeline Tags: Football Business and Politics

The Spanish government announces that the “Beckham law” will cease to apply on January 1, 2010. The law was passed in 2005 in order to lure top foreign executives to Spain by giving them a massive tax break (see 2005). However, most of the people who took advantage of the law were footballers, in particular England and Real Madrid midfielder David Beckham. The law’s repeal will lead to Spanish clubs having to pay foreign players more in future, creating a more level playing field for signings with clubs in other European countries. [Xinhua News Agency (Beijing), 11/4/2009]

Timeline Tags: Football Business and Politics

Ordering 

Time period


Email Updates

Receive weekly email updates summarizing what contributors have added to the History Commons database

 
Donate

Developing and maintaining this site is very labor intensive. If you find it useful, please give us a hand and donate what you can.
Donate Now

Volunteer

If you would like to help us with this effort, please contact us. We need help with programming (Java, JDO, mysql, and xml), design, networking, and publicity. If you want to contribute information to this site, click the register link at the top of the page, and start contributing.
Contact Us

Creative Commons License Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike