According to the new tax rate, by the end of the year, FPF should receive more than R$4 million from large companies.

Getty

Corinthians fans packed the stadium, but 7% of the club’s revenue was donated to FPF

Since the start of the Paulista season in 2016, teams in the first state division have felt the fatter purse strings thanks to a tax collected by the local federation. This is because the tax rate for the Sao Paulo Football Value Addition and Development Fund has come into effect, which replaced another fund that had existed since 1996 and reserved an additional 2% of the total revenues of the competitions of the four major Sao Paulo clubs.

This fee was added to the 5% fee that FPF already charged previously, which now totals 7% discount on gross revenue (not net revenue) from home games of big teams. According to an investigation, the two taxes combined should be abolished ESPN.com.brabout R$4.2 million from Corinthians, Palmeiras, Sao Paulo and Santos, just from the Paulista First Division.

The new fund will replace the Stadium Maintenance and Modernization Fund, which has existed for nearly 20 years. The decree for this change was signed last year by President Reinaldo Carneiro Bastos. The FPF explained to ESPN About the cost.

“In June 2015, a resolution of the Presidency changed the Fund for the Maintenance and Modernization of Old Stadiums, created in 1996, with the aim of helping affiliated clubs with structural reforms. Since then, this objective has been replaced by the new Value Addition and Development Fund, Futebol Paulista, aimed at encouraging marketing and development projects of affiliated clubs. This new money has been actually used through FPF actions with clubs, provision of promotional materials for matches, commercial actions and marketing. The percentages collected have not changed: 2% for matches with Corinthians, Palmeiras, Santos and Sao Paulo, and 1% for matches with other clubs”, warns the Federation.

So far, the 2% charged by the Paulista Football Value Addition and Development Fund will have deducted more than R$100,000 from all Paulistão teams by the end of the third round for this issue alone. With the remaining 5%, the entity will have earned more than R$250,000.

Just in the game Corinthians, 0.85 times the total income you receive from duels is allocated directly to this entity. The net income after deducting all discounts is R$ 953,154.77.

The rule is that the country’s four largest companies pay 2%, while the smaller companies that are principals pay only 1%. This means that in some games, such as Mogi Mirim x Audax, only R$93.70 is allocated to the federation.

If the big four reach the final, the FPF payment could be even larger. For the purposes of the analysis, last year’s final between Palmeiras and Santos, held at Allianz Park, had a total gross revenue of 4,181,281 reais – in this case, 2% would be 83,625.62 reais, while 7% would be 292,689.67 reais.

Corinthians, the team that has contributed the most to FPF so far in the 2016 season in Paolitang, will host Capivariano this Thursday in Itaquera.

Look at how much the new fund’s 2% charge has taken from Paulie Don’s clubs so far:

Santos x San Bernardo – R$ 7,786.30
Água Santa x Ferroviária – R$ 2,104.80
Ponte Preta x Santos – R$ 1,005.35
Corinthians x XV de Piracicaba – R$ 32,889.10
Botafogo x Palmeiras – R$ 8,971.30
Palmeiras x Sao Bento – R$ 9,926.80
São Paulo x Água Santa – R$ 5,609.50