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Soccer-Monaco to pay league $68 million to keep tax advantage

Reuters

PARIS, Jan 24 (Reuters) - Title contenders Monaco are to pay the French League (LFP) 50 million euros ($68.43 million) as part of a deal that brings to an end a year-long tax dispute.

"Monaco have found an agreement with the LFP which guarantees the club their participation in the championship while keeping their headquarters in the principality," the Ligue 1 team said in a statement.

Under the agreement, which was also confirmed by an LFP statement, Monaco will pay the league a "voluntary, single lump sum of 50 million euros".

The club threatened legal action in May against a league edict that they had to move their headquarters to France, thereby ending tax exemption for their players.

Monaco accused the authorities of demanding a payment of 200 million euros to stay in the championship without having to move.

The French football federation (FFF) argued it was the principality club who brought up the subject and the sum of money.

Second-placed Monaco, who are five points behind leaders Paris St Germain, have attracted several leading players over the years helped by the fact that, under the principality's laws, foreigners do not pay tax on their wages.

The LFP had ruled that the club must move their head office to France by June next year, meaning players would have had to pay tax in the country.

($1 = 0.7307 euros) (Reporting by Julien Pretot, editing by Tony Jimenez)

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