Cristiano Ronaldo, Portuguese international and one of the world's best footballers, was fined €18.8 Million on Tuesday for Tax Fraud. He allegedly dodged tax in Spain while playing for Real Madrid in between 2010 to 2014. By agreeing upon a settlement for the case Ronaldo avoided prison time. To be specific, 23 months.
Ronaldo, although out of his prime, is still one of the worlds best players. After leaving Real Madrid and joining Juventus, Ronaldo has certainly made an effect. The highest goal scorer in the league and top 5 in assists and the Champions League elimination round hasn't even started! Throughout his career, Ronaldo has won 5 Balon d Or's and is tied with Lionel Messi for the most ever. All this is what makes him a superstar.
The question is, why is one of the highest paid athletes in the world committing tax fraud? He certainly has enough money. To answer this, one must look at other "superstars" with similar stories.
First of all, Lionel Messi. Argentine international, and along with Ronaldo, one of the best in the world. Two years ago, in the summer of 2017, Messi and his father were found guilty of tax fraud. They had defrauded the Spanish government of a total of €4.1m between 2007 and 2009. Messi was originally charged with a 21-month prison sentence, but this was changed to a €252,000 fine, which is €400 for each day of the original sentence. Meanwhile, his father was originally given a 15-month prison sentence which was changed to a €150,000 fine. Once again, another "superstar" with tax fraud problems. In addition to these jail terms, Messi and his father were fined a total of €3.5 Million, and also paid a voluntary €5 Million "correction payment."
Neymar da Silva Santos Júnior, or as most know him, Neymar Jr, was one of the top three players in the world. Messi, Ronaldo, and Neymar were widely considered to be the best in the world a few years back. However, Neymar's performance, although top-ranking, has slipped in the past years. Ranking him in the top 3 these days could be considered a stretch. However, in his prime, the year of 2016, Neymar was found guilty of Tax Evasion. The difference between the other cases and this one is that Neymar was found guilty in Brazil. A court in Rio found him guilty due to his failure to report earnings from a series of profitable contracts. Neymar was forced to pay 188.8 Million Brazilian Reals. ($51.74 Million/€45.75 Million) In conclusion, a "superstar" making the wrong choices. Why?
All through these three phenoms are the most famous cases of tax fraud, there are other notable cases. For example, Angel Di Maria who currently plays for PSG. When playing for Real Madrid in 2013-14 he was accused of Tax Fraud.
Another example is Alexis Sanchez, who allegedly defrauded the Spanish treasury of €1m when he played for Barcelona in the 2012-13 season. However, the allegations only came when he was in his first year at Manchester United.
So, the big question, why are these famous stars committing tax fraud? Are they intentionally not paying because they don't have money? Well, they are some of footballs biggest names and with that comes a high paying contract. Therefore, this can't be it.
Actually, the answer lies with a players Image Rights. What are image rights, and how could they possibly play a role in a famous footballer committing tax fraud? Stay tuned for Part II of "The Superstar Effect"
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