Catalonia, an autonomous region in Spain, will hold an independence referendum on October 1.

Tensions between Spain and its Catalan region can be traced back to the 18th century when Spain conquered the Catalan capital of Barcelona. With the adoption of a new constitution in 1978, Spain granted some autonomy to the country’s 17 communities, including Catalonia.

Pro-independence parties have built political momentum in recent years by gaining a majority of seats in the Catalan parliament in 2015. In a nonbinding 2014 referendum, Catalan officials reported that 80 percent of voters were in favor of independence, however, turnout only reached 40 percent.

Beyond its historical and cultural differences with the rest of the country, Catalonia’s case for independence relies largely on the economic disparity between it and the other Spanish communities. Proponents of independence see this referendum as a way to separate wealthy Catalonia from the remaining, poorer segment of Spain.

Catalan lawmakers voted 72-63 on July 26 to allow the region to declare independence within 48 hours if the upcoming referendum passes, according to the Associated Press. However, the referendum on October 1 will not be met without opposition. Spanish Prime Minister Mariano Rajoy spoke out against the independence efforts during a press conference on July 28.

“There will be no referendum on October 1 because that is what the Constitutional Court has determined. […] The Spanish government is going to defend the law,” Rajoy said. Previous rulings from Spain’s Constitutional Court have said that attempts to secede would be unconstitutional.

Rajoy also tweeted: “After hearing the opinion of the Council of State, we filed an appeal to ensure compliance with the law and to protect civil servants.”

Some citizens are afraid to vote in the upcoming referendum because it could violate Spanish law and the directive of the country’s leaders. Polling stations must decide whether to even open and allow people to cast their votes. Across Spain, uncertainty remains in the months leading up to the referendum.

Marcus Dieterle

Marcus is an editorial intern at Law Street. He is a rising senior at Towson University where he is double majoring in mass communication (with a concentration in journalism and new media) and political science. When he isn’t in the newsroom, you can probably find him reading on the train, practicing his Portuguese, or eating too much pasta. Contact Marcus at Staff@LawStreetMedia.com.

The post Catalonia Approaches Independence Vote Amidst Tensions With Spain appeared first on Law Street.

Wednesday night at FedEx Field in Washington D.C., Spanish soccer giant Barcelona played a friendly match against the English football club Manchester United. The game ended in a 1-0 victory for Barcelona, with the only goal coming from Brazilian forward Neymar, who was able to put pressure on the ball and escape multiple defenders in order to score a beautiful goal. Neymar has been a catalyst for his team since arriving in 2013, bringing nine trophies in just three years to Barcelona. But it appears that the superstar striker may be on the move.

Over the past week, there have been multiple reports that Neymar is interested in joining French football club Paris St.-Germain (PSG). The team plans on activating Barcelona’s €222 million release clause, as well as a potential transfer payment of €196 million. PSG would also pay Neymar’s wages of €30 million a year for the next five years, as well as a €40 million fee to his father, who acts as his agent. The entire deal could amount to €450 million, which would obliterate the previous transfer payment record, set by Manchester United, which payed €105 million for French midfielder Paul Pogba last summer.

However, some sources say that a decision has not been made yet because Neymar and his associates are concerned that the deal may violate the Financial Fair Play rules. Before he signs the deal with PSG, Neymar reportedly wants assurances that he will not be investigated by the Union of European Football Associations (UEFA), European soccer’s governing body.

Financial Fair Play is a financial reform established by former UEFA President Michel Platini in 2010, in response to the growing number of teams running huge debts and declaring bankruptcy.

The rule requires clubs to balance spending with revenue. The end goal is for a club to break even for every three-year assessment period. However, clubs are allowed to spend more than they take in if the excess expenditure “is entirely covered by a direct contribution/payment from the club owner(s) or a related party.” Under FFP regulations, players’ wages are not allowed to exceed 70 percent of the club’s income.

If a soccer club is found to be in violation of FFP regulations, the consequences can be severe. Teams and individual players can be banned from participating in major UEFA competitions, and the UEFA can withhold a club’s revenue. PSG was previously found to be in violation of FFP rules, and was fined €60 million.

During the 2015-16 season, PSG made €105 million, and players’ wages made up about 54 percent of the club’s income. But even if PSG absorbed Neymar’s massive contract, the club’s total wages would be 65 percent of its income, which would put them in compliance with FFP regulations.

The overall problem posed by the transfer would be the addition of €100 million in expenditures just from adding Neymar this year alone. But PSG is confident that bringing in a player of Neymar’s caliber and popularity would dramatically increase merchandising sales for the club, which would help offset his massive fee. Neymar is one of the most marketable and recognizable sports figures in the world–he has 78.6 million Instagram followers.

To make up for their Neymar-related spending, PSG can offload some of its more expensive players. But so far, according to Andrea Traverso, the head of UEFA’s club licensing committee and financial fair play, PSG has been following the FFP regulations. As long as the club is able to break even on the deal, the UEFA has no problem with it spending €450 million for one player.

James Levinson

James Levinson is an Editorial intern at Law Street Media and a native of the greater New York City Region. He is currently a rising junior at George Washington University where he is pursuing a B.A in Political Communications and Economics. Contact James at staff@LawStreetMedia.com

The post Could Financial Fair Play Rules Force Neymar to Stay in Barcelona? appeared first on Law Street.

As the star players of two of the largest clubs and fiercest rivals in European soccer, Cristiano Ronaldo and Lionel Messi are constantly pitted against one another in arguments all over the world to determine who the greater player is. Ronaldo supporters will point to his sheer power and athleticism, combined with his knack for scoring goals. Messi supporters will counter with the Argentinian’s technical abilities and unmatched eye for the game.

But the two have decided to challenge one another in a new competitive realm. On Tuesday, Ronaldo was called to appear in court on July 31 to testify in a case in which he is accused of evading taxes. The announcement came less than one year after rival Messi was found guilty of three counts of tax fraud by a Barcelona court.

Just as no two players are created equal, no two tax fraud cases are either. In order to settle the debate of who truly is the best player, we need to find out who had the better tax-related scandal. Each case will be analyzed using five different criteria: total taxes missing, the player’s excuse, their alleged reactions to the accusation, the locations where the money was hidden, and the potential prison sentence.

Total Taxes Missing

Earlier this month, the Spanish daily sports newspaper Marca reported that Ronaldo is accused of evading 14.75 million euros ($16 million) in taxes between 2011 and 2014, totaling around 3.7 million euros ($4 million) a year. Of course, that total was not reached in such a nice-and-easy manner. Spanish authorities say that the amount of taxes evaded grew over time, with 1.39 million euros in 2011, 1.66 million euros in 2012, 3.2 million euros in 2013, and 8.5 million euros in 2014.

Messi, on the other hand, was convicted of tax evasion for his unpaid dues between 2007 and 2009. Much like his Champions League campaign with Barcelona this year, Messi’s efforts to keep up with Ronaldo simply were not enough. The Argentinian forward totaled only 4 million euros in unpaid taxes (roughly $5.3 million), according to Forbes. Even on a year-by-year average, he doesn’t come close to Ronaldo, averaging only 1.3 million euros a year.

Winner: Ronaldo. Numbers don’t lie.

Excuses

Jamaican-American reggae fusion singer Shaggy said it best when he simply replied, “it wasn’t me” to admittedly legitimate accusations of adultery back in 2000. Messi decided that this was the best course of action as well.

During his trial, he admitted that he had not read many of the documents that he signed during that time period and claimed that he had no idea how the tax system operated in Spain. This tactic worked at first, as Spanish tax authorities decided to accept the superstar’s reasoning in 2013 and initially only charged Messi’s father. But in 2014, a Spanish prosecutor decided to expand charges to Messi, saying, “even 10-year-old children” know taxes must be paid.

Ronaldo’s defense focused on the technical details of the charges, as well as intent. His legal team argued that the Spanish government is overstepping their bounds by taxing income that he earned abroad. They’ve also said that he paid tax to the Spanish treasury on 20 percent of his total image rights when, in fact, more than 90 percent of these are generated outside Spain. “There is no tax evasion scheme… There has never been any hiding nor any intention to hide anything,” Ronaldo’s representatives said.

Winner: Ronaldo. His legal team basically said, “it’s not his fault he’s so popular.” That’s bold.

Initial Reactions

It seemed like the story of the summer for many. After the accusations against Ronaldo came to light, numerous media outlets–including the BBC–reported that the Portuguese superstar wanted to leave Spain to get away from the legal mess. Naturally, Manchester United, the club where he grew to international fame, was one of the first listed as a likely destination, exciting fans everywhere.

But at the time of the initial accusations against him, it seemed like Messi was keeping calm, cool, and collected. However, it was reported that he also wanted out of Spain to join his former Barcelona manager Pep Guardiola at Manchester City after the 21-month jail sentence was handed down to him and his father.

Winner: Messi. Ronaldo’s tantrum was reported by all major European news outlets. The most reputable source for Messi’s was the Daily Mail.

Where they Stashed the Money

Messi’s money was reportedly embezzled through offshore accounts in the U.K., Switzerland, Uruguay, and Belize. Ronaldo’s only made it to a shell company in the British Virgin Islands.

Winner: Messi. He clearly tried harder.

Prison Sentences

Spain has an unwritten rule that any sentence less than two years does not actually have to be served in prison and can be substituted with probation. Messi made it just under that bar with his 21-month sentence, though at one point it could have been as high as five years along with millions in fines.

Ronaldo’s situation might be a bit more difficult to overcome. The BBC reported that three of the four accusations of tax fraud are considered by prosecutors to be “aggravated,” which means they carry a minimum sentence of two years each, and if all four are met with guilty verdicts, he could face up to seven years. In order to slip under the two-year maximum, Ronaldo would have to admit guilt and pay taxes and fines in advance to get his sentence suspended.

Winner: Messi. Sentenced to less than two years and not actually having to serve them.

The debate over who is the best on the pitch will rage on well after both have retired, but the question of who is better at defrauding the Spanish government of taxes has well been decided.

Overall Winner: Messi 3/5

Gabe Fernandez

Gabe is an editorial intern at Law Street. He is a Peruvian-American Senior at the University of Maryland pursuing a double degree in Multiplatform Journalism and Marketing. In his free time, he can be found photographing concerts, running around the city, and supporting Manchester United. Contact Gabe at Staff@LawStreetMedia.com.

The post Ronaldo Versus Messi: Spanish Tax Fraud Edition appeared first on Law Street.

Soccer star Lionel Messi has been sentenced to 21 months in prison, after he was found guilty of three counts of tax fraud in a Spanish court. But legal experts have cautioned that given the nature of his crimes and the length of his sentence, the Barcelona player probably won’t serve any time actually behind bars.

Messi’s father was also sentenced to 21 months in jail for tax fraud but he too probably won’t serve time. The two defrauded Spain of $4.5 in between 2007 and 2009. According to BBC they were found guilty of “using tax havens in Belize and Uruguay to conceal earnings from image rights.” In Spain, those found guilty of financial crimes and sentenced to under two years in jail are able to serve that time on probation. This will require them to stay out of legal trouble while they are on probation, as well as meet other requirements. They both could be facing hefty fines, as well, but given Messi’s enormous net worth, even hefty fines shouldn’t be a big burden for the star.

Messi’s team, Barcelona, has issued a statement of support for their player and his father, saying:

The club, in agreement with the government prosecution service, considers that the player, who has corrected his position with the Spanish Tax Office, is in no way criminally responsible.

At this point, Barcelona is the only team that Messi plays for, given that he recently announced his retirement from the Argentine national team and international soccer.

Both Messis are expected to appeal their cases. Here’s a press release explaining the appeal:

The Messi press release in English where it confirms he will appeal to the Supreme Court pic.twitter.com/v6QLS8xadG

— Guillem Balague (@GuillemBalague) July 6, 2016

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.

The post Lionel Messi Sentenced for Tax Fraud appeared first on Law Street.