The governing body of Formula 1 has indicated that it might relocate its operations away from France. Both the FIA, which has been based in Paris for over a century, and FIFA, another Paris-founded international sports organization, have expressed dissatisfaction with the French legal and tax system, which they say does not suit their operational needs.
According to reports from French media, the main concerns highlighted by the organizations include a “legal and tax system” that is “not adapted to their activities.” Xavier Malenfer, an official with the FIA, has emphasized the challenges posed by the competitive international landscape. “Although France is the cradle of motorsport, international competition, particularly in terms of labour costs, and the globalisation of sport, are weakening this position,” he noted.
Malenfer further explained that without the establishment of a specific status for international sports federations in France, it is unlikely that the FIA will see further development of its activities in Paris, despite the city’s significant contributions to the sports world. “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 incontestable merits of Paris,” he added.
Towards the end of the previous year, it was revealed that French authorities might retract previously favourable tax conditions for international sports organizations. As a result, both FIA and FIFA are seeking definite answers regarding the “legal, social and fiscal regime which would be applicable to them.”
Kenny Jean-Marie, head of FIFA’s Paris office, clarified their stance on the matter. “International sports federations are not asking for extraordinary privileges, or to be treated better than other types of organisations, but not less well either,” he stated, underscoring the need for equitable treatment in regulatory matters.
GMM
