The Impact of Labor Costs and Globalization on France’s Position in International Motorsport Competition

The Impact of Labor Costs and Globalization on France’s Position in International Motorsport Competition

2024-04-24 11:37:32

“Although France is the cradle of motorsport, international competition, especially in terms of labor costs, and the globalization of the sport, is weakening this position”explains Xavier Malenfer, director of institutional and international relations at the FIA ​​in a joint press release. “Without clarification, through the recognition of a specific status for international sports federations, there is little hope of seeing the activities of the FIA ​​develop further, despite all the undeniable assets in Paris.”he continues.

“The biggest obstacle identified for this French attractiveness: the absence of their own legal status for international federations”

FIFA, FIA and IFAF

In late 2023, the French leader attempted to introduce into the 2024 budget a law containing tax provisions intended to attract international sports federations recognized by the IOC to France, primarily football. Since June 2021, FIFA, established in Paris in 1904 and headquartered in Zurich, Switzerland, has had a Paris department, responsible for relations with confederations and technical cooperation for the benefit of the development of football. The French capital also houses a clearinghouse that is specifically responsible for solidarity mechanisms. A first step before possibly moving the entire headquarters to France.

However, in December 2023, the Constitutional Council censured this beneficial tax regime, invoking equality before taxes and thereby questioning the installation of these federations.

“The biggest obstacle identified for this French attractiveness: the absence of their own legal status for international federations. According to French law, they have the status of associations, and cannot be considered either as international organizations or as companies. Which has concrete consequences for their activities, their taxation, and ultimately their interest in being in France.”explain FIFA, FIA and IFAF, the International Federation of American Football, brought together by Sporsora, which brings together sports actors, on Tuesday evening, during a conference dedicated to the status of international federations.

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