The French government is going to "exempt the various entities responsible for organizing the Euro 2016, which will be held in France from June 10-July 10, 2016, from all taxes," according to LES ECHOS. The exemption measure "sets in stone a commitment by France made when the application to organize this competition was submitted" in ’10. Except for the Value Added Tax, which is set under European rules, no tax (corporate or other French taxation) will be levied on UEFA or its French subsidiaries. For the event, "an ad hoc legal structure was created, dubbed 'Euro 2016 SAS,'" and is owned 95% by UEFA and 5% by the French Football Federation. It handles all the organization of the competition, with the exception of security and the building or renovating of the stadiums. Euro 2016 SAS President Jacques Lambert said, “It handles all the commercial rights, marketing rights, television rights, and 'licensing' rights.” The expected benefits are valued at €900M ($1.1B) and mainly come from broadcasting rights. Not surprisingly, "granting such a tax advantage is based on the expected economic impact of the competition" on the French economy. A sporting event of this magnitude leads to the "modernization of the public infrastructure, at the local as well as national levels, and thus increases the country’s attractiveness" as a whole. UEFA is hoping to attract 2.5 million spectators, with 1 million coming from abroad (LES ECHOS, 11/3). L’EQUIPE reported the French professional clubs union (UCPF) released a statement Monday to “avoid any confusion” between the "near total tax exemption which should benefit UEFA in organizing the Euro 2016 and the fiscal situation of the French clubs." UCPF: “The UCPF wishes to clarify, in order to avoid any confusion, that the 42 French professional football clubs will not be affected by these possible measures which could be taken as part of the organization of this international competition on French soil.” Starting on Jan. 1, the clubs will benefit from a lower VAT rate on the price of admission tickets (L’EQUIPE, 11/3).
