July 31 – The Argentine Football Association (AFA) and River Plate have protested strongly against the government’s tax raise on football clubs.
Earlier this week, the Argentinian President Javier Milei and his government decreed that football clubs must pay higher social security contributions. Previously, clubs enjoyed a privileged regime. Starting in August, social security contributions related to various football-related activities will be subject to a withholding rate of 13.06% to “balance the social security system deficit.”
The Argentine FA released a statement titled “Lies, the order of the day. The only truth is reality.”
It read: “The government’s only interest is to pressure non-profit clubs (suffocating them) so that it is possible to incorporate SADs (sports limited companies), which is nothing more than allowing the entry of speculative money to do business with our clubs and players trained in our youth categories.”
Highlighting their social and educational role, River Plate called the new decree “confiscatory” and added that it would “reverse the direct and positive economic impact of the Club’s actions.”
In a lengthy statement, the Buenos Aires giants wrote: “River Plate is one of the leading producers of elite professional footballers who represent Argentina in the world’s most competitive leagues. This model of talent development and export not only positions Argentina’s brand abroad but also generates genuine foreign exchange earnings for the country. Between 2022 and 2025, River Plate generated more than USD 106 million in gross international transfers.
“The recent regulatory modification established by Provision 16/2025 and Decree 510/2023 is confiscatory, generating a considerable negative fiscal impact on the institutional structure of River Plate, putting at risk the continuity of the social and educational initiatives mentioned above. Analysing the balance sheets between September 2023 and June 2025, the regulatory modification would imply an estimated net loss of AR$ 16,820 million for the Club due to the increase in withholdings from 8% to 19.12% and the stability of the benefits provided for in F931.”
Argentina’s Minister of Deregulation, Federico Sturzenegger, however, hit back and defended the decree on his X social media account, pointing out that the clubs were “millionaires subsidised by retirees,” as they paid less taxes than expected under the general regime.
Contact the writer of this story Samindra Kunti at moc.l1754132981labto1754132981ofdlr1754132981owedi1754132981sni@i1754132981tnuk.1754132981ardni1754132981mas1754132981