Source: Daily_Mail
Tax rises are persuading foreigns to snub Premier League, claims Kenyon
Chelsea chief executive Peter Kenyon believes top foreign players are being deterred from moving to the Premier League due to tax increases and the high value of the euro.
Kenyon, who also admitted that Chelsea are unlikely to hit their target of breaking even by 2010, said the rise in the top rate of tax to 50 per cent and the exchange rate had had a noticeable impact.
Earlier this year, Kaka turned down a reported £500,000 a week at Manchester City, while Karim Benzema chose Real Madrid ahead of Manchester United this summer and Kenyon claims it is down to tax reasons.
Kenyon said: 'Foreign players coming to England has no doubt been a big part in the success of the Premier League. If you look at the two issues of the exchange rate and the income tax both of those are challenging irrespective of which club you are.
'The competition itself and the stature of the clubs will continue to attract football players because ultimately they want to win things and want to play at the highest level so we still have that going for us. But in financial terms, yes there is an impact on us.
'When you talk about the income tax going from 40 per to 50 per cent and the euro exchange rate going from 1.47 [to the pound] which it was for five years to below 1.20, you don't have to be in football to understand that's just a general economic industry issue.'
In 2005, Kenyon announced a target of the club breaking even by 2010but admitted that does not look realistic - they recorded a loss of£65.7million in the year up to June 2008.
He said: 'We continue to move in the right direction. Will it happen in 2010? Probably not. It is about going in the right direction and we are doing that.'
Kenyon also revealed that manager Carlo Ancelotti is unlikely to make any new signings - they have been linked with Atletico Madrid forward Sergio Aguero - before the transfer window closes on Tuesday.
He said: 'It's very unlikely and I think Carlo is very happy with the squad. He's had a great start and I think at this stage it's very late in the window and generally we feel the squad is strong.'
