Taxing transfer income

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SBroccoli
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Taxing transfer income

Post by SBroccoli » Wed Feb 06, 2008 2:49 pm

OK, this is a suggestion that is undoubtedly going to be loathed by all the toppplayers who made their success on the transfer market.

Never the less, it has come up a number of times that there's inflation in the game.

So my logical counter would be to take out money from the game where it is available in a way that it won't threaten the survival of clubs in general.

Removing or reducing income from banners is sure to hurt all clubs whereas taxing transfers would primarily hurt the clubs with a large turn over/those who can afford it.

Just to be precise, the tax - e.g. 10% - goes to 'SP' - meaning it leaves the SP economy all together.

Which kind of effect would this have on the transfer market?

* supply effect: lower the number of players on the transfermarket? This is possible, but not 100% sure to happen. In any case I think it's fair to say that there are by far enough players on the market at any time. SO the quantitative effect should not be a deterrent.

* price effect? Would sellers try to increase the selling price to cover the tax expense? Possibly, but since it's all market based, demand would decline if that happened and in return price demands would follow down.

* lowered gearing. A relative tax would amount to higher nominal figures for expensive players than cheap players. This is important since the nominal profit on the trade for the seller is what keeps his club running. The club has a lot of fixed costs. So the taxing effect would probably put a downward pressure on the highest priced players. And I don't think it would be a bad thing, actually.

To sum up, I don't see a problem in this suggestion so far.
Currently playing in D11
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lee400
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Post by lee400 » Thu Feb 07, 2008 6:01 pm

I agree with you there, the SP is in need of some 'deflation'...
Username: Sir Lee (former lee400)
Team: AFC Bournemouth (Former Yunderland FC)

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