The roar of the crowd, the thrill of a last-minute goal, the drama of the transfer window, football captivates us all. But behind the glitz and glamour, a complex financial ecosystem determines the careers of its biggest stars. When we hear about astronomical salaries and record-breaking transfer fees, it’s easy to assume players are simply pocketing every penny. The reality, however, is far more complex, especially when you factor in the often overlooked beast: taxes.
In this multi-part series, we’re going to pull back the curtain on the financials of elite football, using the curious case of Nigerian superstar Victor Osimhen as our case study. His situation perfectly illustrates why a salary of €190,300 net per week, or roughly €9.8 million annually after taxes and deductions, (following a salary reduction in 2024 from about €12.8 million per year) in one country can be wildly different from the same nominal figure in another.
Understanding the Net vs. Gross Divide
Before we dive into specifics, let’s clarify a fundamental concept: Gross Salary vs. Net Salary.
- 1. Gross Salary: This is the total amount a club pays a player before any deductions for taxes, social security, or other contributions.
- 2. Net Salary (Take-Home Pay): This is the amount the player actually receives in their bank account after all deductions.
The disparity between gross and net salary varies wildly from league to league, and even region to region, primarily due to differing national tax laws. This is where the plot thickens for players, agents, and clubs alike.
Let’s look at some of Europe’s major leagues and their typical tax regimes for high-earning athletes:
England (Premier League): Often perceived as a high-tax destination. For top earners, the income tax rate is 45% on income over £125,140. Additionally, employees pay National Insurance contributions, typically 2% for high earners. This means a combined personal tax burden of approximately 47%.
France (Ligue 1): French personal income tax for high earners like elite athletes can reach 45%. Historically, there was even a controversial “75% tax” on salaries over €1 million, though this was primarily levied on clubs, not directly on players, and has since been abolished.
Spain (La Liga): While Spain has progressive tax rates, it also has specific regimes that can be beneficial. The famous “Beckham Law” allows qualifying foreign residents (who haven’t been resident in Spain for the past 10 years and are working for a Spanish company) to opt for a flat 24% tax rate on Spanish-sourced income up to €600,000 for up to six years. For EU/EEA residents, this rate can be 19%. However, for those not qualifying for special regimes, general progressive rates can be significantly higher.
Italy (Serie A): Italy has made deliberate efforts to attract talent through tax incentives, most notably the “Impatriati Regime” (also known as the “Growth Decree”). This law offers significant tax breaks for individuals who move their tax residency to Italy.
The Osimhen Case: Italy’s Tax Advantage (and a Common Misconception)
This is where Victor Osimhen’s situation at Napoli becomes a fascinating case study.
Italy offers a special tax incentive called the “Impatriati Regime” for inbound workers, including professional athletes, which halves the taxable income for qualifying individuals. Individuals who are registered residency in Italy before December 31, 2023, would continue to benefit from the rules in place when they moved. Since Osimhen joined Napoli in 2020 and extended his contract on Christmas Eve 2023, benefits the “old” regime.
However, While the Impatriati regime offers a 90% exemption for non-athletes moving to Southern Italy (like Campania, where Napoli is located), professional athletes were subject to a specific rule, typically receiving a 50% exemption on their taxable income. This means only 50% of their income was taxable.
Therefore, if Osimhen’s gross salary was €250,000 a week (€13 million per year), and assuming a 50% tax exemption for athletes under the old Impatriati regime:
Gross Weekly Salary: €250,000
Taxable Income (50% of gross): €125,000
Non-Taxable Income (50% of gross): €125,000
While Italian progressive tax rates apply to the taxable portion, a simplified estimate for a high earner like Osimhen suggests he would pay approximately 43% tax on his taxable income.
Tax on Taxable Income (€125,000 × 43%): €53,750
Net Weekly Income (€250,000 - €53,750): €196,250
This results in a net weekly income is close to the reported €190,300, confirming the substantial tax advantage Italy offers compared to other leagues.
The Real Cost of “Same Wages” Elsewhere
This tax differential has a profound impact when a player considers a move to another league. To maintain the same net take-home pay in a higher-tax country, the gross salary offered by the new club must be significantly higher.
Let’s assume a player is currently taking home €196,250 per week and wants to maintain that net salary when moving to a new league.
Spain (approx. 19% tax for eligible non-residents):
To take home €196,250, the gross salary needed would be: €196,250 / (1 - 0.19) = €242,284 per week (approx)
Club’s Cost: €242,284/week.
France (approx. 45% tax for high earners):
To take home €196,250, the gross salary needed would be: €196,250 / (1 - 0.45) = €356,818 per week (approx)
Club’s Cost: €356,818/week
England (approx. 47% tax for high earners):
To take home €196,250, the gross salary needed would be: €196,250 / (1 - 0.47) = €370,283 per week (approx)
Club’s Cost: This is the gross salary a club would have to pay the player. On top of this, clubs also pay employer National Insurance contributions (approx. 13.8% on top of the gross salary), which adds to their overall financial outlay.
As you can see, the gross salary a Spanish, French, or English club would have to offer to match Osimhen’s net take-home pay from Italy would be considerably higher, even more so if we consider the initial €240,000 net estimate. This explains why clubs might baulk at seemingly high wage demands, as the real cost to them is magnified by their respective tax regimes.
In Part 2, we’ll go deeper into average salaries across major leagues, compare Osimhen’s reported wages to other top strikers like Erling Haaland, and explore how clubs actually determine player values and transfer fees. Stay tuned!
