The shadow of possible sanctions, ranging from a simple fine to a refusal to participate in the French Championship, weighed on Monaco since its recent title of champion of France. The club of the Principality accused of late payment of the “luxury tax” set up by the National Basketball League (LNB) to deduct its substantial payroll. The doubt has been lifted these days, as both parties have confirmed to us. The deadline of June 30 was finally respected – at the buzzer – with a transfer sent last Friday for the payment of the sums still owed to the LNB (950,000 euros, according to our information).
A sum donated to other Betclic Elite clubs
The “luxury tax” was set up by the LNB and set at 1.25 million euros (an amount reassessed each season based on the payroll of the previous financial year) in order to compensate for the differences in tax and social security regimes between the club from the Principality and its French counterparts in the Championship. This is a compensation mechanism inspired by the NBA (a tax is applied there when a team exceeds the salary cap set each year), the result of a calculation based on the annual payroll. Once paid, the “luxury tax” is then distributed between the 17 other elite clubs (15 next season) and the LNB in an equitable manner.
Monaco still hopes for a revision in the long term, or at least a relaxation of this obligation, the introduction of which it has never digested. ASM had fought its legitimacy in 2022 after Alexey Fedorychev, boss of FedCom and president of the club, took power, before reluctantly accepting it after, among other things, a failure with the Administrative Court. “We expect more flexibility and understanding from the League to support our progress and continue to compete at the highest level in Europe,” said Oleksiy Yefimov, executive director of ASM, in these columns three weeks ago.
