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Sports Law & Taxation Sports Law & Taxation formerly known as: Global Sports Law & Taxation Reports (GSLTR) Contents 2021/01 Football: The impact of COVID-19 on the football industry – A player-centric perspective 2021/02 The potential liability of sporting associations for COVID-19 induced harms to players – Part one 2021/03 The commercial exploitation of youth athletes in South Africa – Part one 2021/04 Football: Inducement by clubs in light of art. 17(4) FIFA RSTP 2021/05 Fighting racism in English football: still a long way to go! 2021/06 Saving Trinidad and Tobago domestic football. An intellectual property based proposal – Part two 2021/07 Some South African perspectives on WADA’s Whereabouts rule and its impact on athletes’ rights to privacy – Part two 2021/08 Pro-athletes: Guidelines for choosing a financial advisor 2021/09 Sportspersons, entertainers and taxing the digital economy 12M1 march 2021 SLT12-1.indd 1 09-03-2021 17:49:48 Colofon Table of Contents managing editor Vol. 12 No. 1 March 2021 Dr. Rijkele Betten consulting editor Editorial 4 Prof. Dr. Ian S. Blackshaw members of the editorial board Articles Prof. Guglielmo Maisto Maisto e Associati, Milano 2021/01 Football: The impact of COVID-19 on the football industry. A player-centric perspective Dr. Dick Molenaar by Dr. Lucien W. Valloni 8 All Arts Tax Advisers, Rotterdam 2021/02 The potential liability of sporting associations Mr. Kevin Offer for COVID-19 induced harms to players – Part one Hardwick & Morris, London by Dr. Jason Haynes 11 Mr. Mario Tenore 2021/03 The commercial exploitation of youth athletes in South Africa – Part one Maisto e Associati, Milano by Zawadi Dlamini and Steve Cornelius 15 coordinator 2021/04 Football: Inducement by clubs in light of art. 17(4) FIFA RSTP Erica Pasalbessy (MSc) by F.M. de Weger and C.F.W. de Jong 20 Nolot P.O. Box 206 2021/05 Fighting racism in English football: still a long way to go! 5270 AE Sint-Michielsgestel by Jonathan Copping 25 The Netherlands Tel.: +31 (0)625279308 2021/06 Saving Trinidad and Tobago domestic football. E-mail: [email protected] An intellectual property based proposal – Part two by Dr. Justin Koo 29 For further information on the journal and on how to obtain a subscription see: 2021/07 Some South African perspectives on WADA’s Whereabouts www.sportslawandtaxation.com. rule and its impact on athletes’ rights to privacy – Part two by David Robert Du Toit and Steve Cornelius 33 ISSN nr.: 2211-0895 © Nolot BV 2021 2021/08 Pro-athletes: Guidelines for choosing a financial advisor All rights reserved. by Lazaros Ioannou 39 Preferred citation: Sports, Law and 2021/09 Sportspersons, entertainers and taxing the digital economy Taxation (formerly GSLTR) 2021/1, at page by Michelle Klootwijk and Dick Molenaar 41 number(s) 2021/10 Tax avoidance – Has the pendulum of public sympathy swung? disclaimer by Tim Gillett 45 Whilst every care has been taken in the production of this publication and its 2021/11 Fiscal residence and criminal tax implications contents, the publisher and the authors for professional football players of the articles and reports cannot by Pietro Mastellone 49 accept any legal liability whatsoever for any consequential or other loss arising therefrom incurred by any subscribers or other readers as a result of their relying on any information contained therein, which is not intended to constitute any advice on any particular matter or subject but merely provide information of a general character. © nolot march 2021 3 SLT12-1.indd 3 09-03-2021 17:49:48 sports law & taxation EDITORIAL It is with much pleasure that we welcome readers to the 5.6%. Local economists’ worst-case scenario projections were March 2021 edition (citation: SLT 2021/1) of our ground- even more concerning, predicting that the economy could breaking journal Sports Law and Taxation (SLT) and shrink even by 13%, depending on how long the economy on-line database (www.sportsandtaxation.com). would be in lockdown. Despite these projections, the most recent release of Eurostat data on GDP growth shows that The COVID-19 pandemic is continuing to claim lives and the Cyprus economy has only shrunk by 5.1% in 2020. livelihoods around the world. At the time of writing, And whilst the Cyprus government is under constant fire for according to the WHO figures, globally, there have been the financial management of the pandemic, it has also gained 112,456,453 confirmed cases and 2,497,514 deaths. Sport is international recognition for the way it has contained the first not immune. However, for example, association football wave of the pandemic, between March and May 2020. The (soccer), at both the national and international levels, is immediate implementation of measures, such as school and managing to survive, subject to the imposition of and university closures, prohibition of public gatherings, travel compliance with strict protocols and precautions. bans, active contact tracing with extensive and targeted We invited Constantinos Masonos, General Director at testing, have proved to decrease significantly community Appollon Football and Athletic Club (website: http:// transmission and contain the pandemic. Also, the new apollonclub.com.cy), Limassol, Cyprus, to report and General Health System, implemented in 2019, allowed all of comment on the social and economic effects of the the island’s residents to be covered for the first time, reducing pandemic and how sport is faring in his country, charges, mainly for low-income people, and allowed Cyprus despite everything. His report now follows. to be better prepared for the challenges of the pandemic. The recent developments and the approval of a number The social and economic effects of COVID-19 on sport in Cyprus of credible vaccines, able to immunize the general “March 2021 marks a year from the appearance of the first population against COVID-19, have raised hopes of COVID-19 case on the island of Cyprus. A year through returning to normality, with the first vaccinations in which the finances and everyday life for the majority of Cyprus rolling out near the end of last December. businesses and people residing on the island have been During the first wave of the pandemic, sport was one of adversely affected, mainly due to the governmental measures the first sectors of the economy to be heavily affected by introduced and enforced to fight the spread of the virus. the strict governmental measures. The very first decree Cyprus was moving on a very good financial path before issued by the Government, required sports to take place the virus outbreak last spring. Now, economic sentiment in venues with closed doors and no fans. The gradually and expectations are at an historic low; consumption escalating measures, led to a general lockdown that and investment have declined substantially; and lower lasted until May 2020, forcing the cancellation of all the external demand for goods and tourism has led economic professional sports leagues, including the biggest (at least growth to slow down by 4.5% in the last quarter of 2020. by revenue) league on the island, the Cyprus Football First Tourism, the main force behind the Cyprus economy, Division, after its initial postponement mid-March. has been severely hit by the pandemic. Consecutive After lengthy discussions between the Cyprus Football travel restrictions have sent international demand for Association (CFA) and government representatives, the tourism close to zero. Almost 4 million tourists arrived on federation almost unanimously (18 votes out of 20), the island in 2019; a number that fell by 84.1% in 2020, decided that the disparity between the federation’s ending four successive record years of tourist arrivals that safety guidelines concerning the pandemic and those helped Cyprus emerge from the 2013 financial crisis. of the government’s own epidemiological team to be an After the European Commission, the European Parliament impossible obstacle to overcome, leaving the cancellation and EU leaders agreed on a recovery plan to help of the Cyprus League as the only possible outcome. All repair the economic and social damage caused by the the top tier leagues on the island soon followed suit. pandemic, the Cyprus government announced a stimulus Such an important decision, of course, was not light package, including relief measures aiming, initially, to heartedly taken. Especially when it involved deciding who support employment and household incomes but also would participate in the European club competitions, for to help struggling businesses avoid bankruptcy. the forthcoming season. Participation in the UEFA Europa According to an IMF (International Monetary Fund) projection, League or the Champions League qualifiers and later last Summer, the Cypriot economy would shrink by 6.5% in stages, can provide essential income for Cypriot football 2020 and would make a comeback in 2021 with a growth of clubs to maintain their budgets at a competitive level. 4 march 2021 © nolot SLT12-1.indd 4 09-03-2021 17:49:48 sports law & taxation Editorial According to the local media, the presidents of the six teams brought to a halt and there is no sign when they will who were, at the time, battling for a place in the European club be able to compete under normal conditions again. qualifiers, had a meeting where they reached a gentleman’s The positive effects of participating in sports at any level, agreement that included the steps that the clubs would even recreationally, on human psychology, and its ability uniformly take, in order to face the consequences of the to fight anxiety, desperation and hopelessness, suffered by pandemic. The presidents agreed that the first four teams in people as a result of the pandemic, was sadly not taken fully the current standings, would participate in the UEFA qualifiers.
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