River Plate and AFA Clash with Government Over New Tax Decree

The Argentine Football Association (AFA) and River Plate have come out strongly against a new government decree that increases payroll taxes for football clubs. Under the current administration, starting in August, clubs will face a 13.06% withholding rate on social security contributions, replacing a previously favorable tax regime.

The AFA condemned the move in a statement titled “Lies, the order of the day. The only truth is reality,” accusing the government of intentionally crippling non-profit clubs to pave the way for the controversial introduction of private ownership models known as SADs (sports limited companies). “It’s about bringing in speculative capital to profit from our clubs and the players we develop,” the AFA wrote.

River Plate echoed the criticism, calling the decree “confiscatory” and warning that it undermines the club’s social and educational programs. The Buenos Aires club highlighted that between 2022 and 2025, it generated over $106 million from international player transfers, contributing valuable foreign currency to Argentina’s economy. The club warned that the new withholding rate—rising from 8% to 19.12%—could lead to a net fiscal loss of AR$16.8 billion between 2023 and 2025.

Responding on X (formerly Twitter), Argentina’s Minister of Deregulation, Federico Sturzenegger, dismissed the backlash, arguing that clubs are “millionaires subsidized by retirees,” and had long benefited from tax breaks unjustified under the general tax code.