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Seat Tax To Hit Football?

1st April 2006

It is believed that football could be hit by the introduction of a new tax, which will be based upon the number of seats inside a sporting stadium. Already, this tax has been dubbed as the "seat tax"!

Today's announcement of a possible "seat tax" closes follows that of a similar proposal that could hit hotels across the country. On March 12th, it was revealed that the Government's Lyons' Inquiry is considering taxing hotels based upon the number of beds in their establishment - please click
here to read further information about the Lyons' Inquiry and the "bed tax".

Although the Woods' Inquiry into possible taxation schemes for sport is at a very early stage, it is already sending shock waves through the sporting world. Football would be especially badly hit should a "seat tax" be introduced, closely followed by rugby. Surprisingly, according to initial research, the worse affected sport is likely to be cricket.

For once, the larger football clubs will be worst hit by the tax and therefore it is expected that they could mount a legal challenge should any government attempt to implement such a tax.

Comments have quickly appeared on internet sporting forums including one from an anonymous football official.

The anonymous official fumed: "Its a joke! Sheer greed is fuelling this proposal.

"Ultimately, any tax would have to be passed on to the supporter, which could mean that an adult ticket to watch a Premiership club will cost over £100 per match by 2009. That's roughly an increase of £10 per person above our budgeted ticket prices."

No actual figures have been released yet. However, based on the above official's guess of £10 per person - or rather, based on per seat, as it is irrelevant whether it is occupied or not - then one can quickly see why such a tax will prove unpopular.

  Number of Seats * Tax Rate Total Due
Arsenal 38,500 * £10 £385,000
Chelsea 42, 449 * £10 £424,449
Lincoln City 9,000 (approx) * £10 £90,000
Manchester United 68,190 * £10 £681,900
Spurs 36,214 * £10 £362,140


It is also easy to see why panic is today sweeping the sporting industry. Many, many unanswered questions remain. One such question is whether this tax would be a classed as a one-off windfall tax or whether it would be an annual tax.

Due to the panic, it is rumoured that further details regarding this tax will be released later today. Hopefully this will ease the fears that sport is today literally sitting on a financial crisis!

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Arsenal, Chelsea, Lincoln City, Manchester United or Tottenham Hotspur football club.

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