Rumors regarding the major signings that AS Monaco were set to make can be in serious doubt now as the Ligue de Football Professionnel has informed the club that they will have to move their headquarters to French soil if they wish to continue.
New tax rules in France have led to the decision which no longer fits with the 19th century agreement that meant foreign footballers playing at Stade Louis II were exempt.
The LFP made the decision in March which AS Monaco appealed, but that was rejected. This puts serious concerns into the future of the club, who are based in the principality of Monaco on the southeast border of France.
The club can purchase the world’s finest lawyers in an attempt to the beat the system, but it appears to be more a matter of principal.
In a statement from AS Monaco it read:
The decision puts the future of the Club in jeopardy and leaves AS Monaco FC with no other option but to refer the case to the French Council of State which is the appropriate judicial authority to adjudicate on the legality of the decisions taken by the LFP in relation to changes in its rules.
The club will fight to prove that the LFP:
Imposed on AS Monaco, forcing it to move its headquarters to France, violates several fundamental principles of French and European law, notably the principle of free movement, free competition, free access to sporting competitions, and also the Franco-Monégasque tax convention signed on the 18th February 1963.
Headquarters effectively means any place where the club is ‘based’ which includes the stadium, training ground and any offices that AS Monaco works from. Seeing as they are the sole club within Monaco, their revenue thrives upon their local fan base which would be in threat if they were to move across the border.
AS Monaco have been involved in major transfer rumors recently, especially with the speculation surrounding Radamel Falcao among other imports that would add up to an expensive summer of spending.
The club are set for their return to Ligue 1 next season having won the Ligue 2 championship this time.
A judgment on AS Monaco’s next defense against the situation is set to be made before the start of next season.