Financial blow for Serie A clubs as government scraps Growth Decree

The Italian government has decided to scrap the Growth Decree regulations in 2024, according to La Gazzetta dello Sport.

The Growth Decree is a tax relief scheme in Italy and has long been a financial lifeline for football clubs, enabling them to pay considerably less tax on foreign players. 

Under the decree, clubs enjoyed a reduced tax reduction for player arrivals from abroad. Players also received tax reductions.

This tax advantage has been invaluable to Italian clubs, enabling them to save on wages and attract high-calibre players from around the world.

Serie A clubs leveraged the Growth Decree to their advantage.

However, this fiscal boon is set to end as the Italian government will abolish the decree regulations on January 1.

The move will also impact the 2023 summer transfer window after Serie A clubs harnessed the benefits of the Growth Decree regulations to secure signings. 

Inter used it to secure Marcus Thuram, while AC Milan leveraged it for Ruben Loftus-Cheek, Tijjandi Reijnders, Christian Pulisic and Samuel Chukwueze. 

Juventus similarly benefited with Timothy Weah, and Napoli secured Jesper Lindstrom and Natan through the decree’s advantages.

As the Italian government prepares to phase out the Growth Decree regulations, the consequences for the players remain uncertain.

However, Serie A clubs will face a more expensive landscape when making signings, with the lucrative tax breaks no longer available. 

This policy shift will undoubtedly shape the future of Italian football and its ability to compete on the global stage.