Pedro Proensa says professional league clubs spend $25 million on insurance

The head of the Portuguese Football League (LPFP) said on Wednesday that professional league clubs spent around 25 million euros on insurance in 2021/202, calling for an amendment to existing legislation.

Pedro Bruenza was heard today in the Assembly of the Republic (AR), in the scope of the debate on the bill approving the specific system for the reparation of damage caused by work accidents involving professional athletes, taking into account a topic “of great relevance” to professional football .

“In 2021/22, the 34 clubs that make up the world of professional football spent about EGP 25 to be able to meet their insurance obligations. Of course, this risk is for customers,” said the LPFP Chairman. Pedro Proensa is aware that the specificity of sport “justifies a certain system” and stressed that the average cost of such insurance is higher than in other areas of activity.

“20% is the average cost of this type of insurance, when the average salary in I Liga is 16,200 euros and in II Liga 3,900 euros. The average cost of insurance in other activities is 1.5%, and even in some higher, nothing comes close. than 13 times more in football.

Proença warned of the risk that insurers would not be available to underwrite these insurances in the future and explained that the reduction in premiums could allow “the amount to be reintroduced into the professional football ecosystem”. He added, “With this amendment, we do not intend to benefit the big clubs. There is great difficulty in paying the insurance sums in the medium and small clubs … a retirement fund.”

The bill, submitted by PS and generally accepted, proposes the possibility of disability revision, which must be requisitionable within 10 years of the date of hospital discharge, in addition to the minimum 5% disability prescribed for compensation for athletes.

The president of the LPFP considered the minimum disability of 5% “insufficient” and advocated for 15% to repair damage caused by permanent partial disability in professional sport, stating that in Spain the value is 33%, in Germany 20% and in the UK 14%.

However, Pedro Proença recognized as a possible solution the proposal of metrics according to merit for the repair of damages for permanent partial disability, proposed by the Portuguese Association of Insurance Companies (APS), even to exclude the possibility of unconstitutionality of the certificate.

The APS made a proposal in which there is no restriction for victims with low salaries, up to 40 minimum wages (30,400 euros), while victims with annual wages between 30,400 euros and 152,000 euros (up to 200 minimum wages) , only if the disability is equal to or more than 5% will be taken care of, which is increased to 10% for those receiving more than 152 thousand euros per year (bonuses over 200 minimum wage).

Although available to discuss escalation, Proença once again advocated an increase in the disability percentages for which compensation must be paid, in cases of salaries over €30,400. In terms of disability review, the Bill argues that it can only be requested within a 10-year period from the date of discharge from hospital, with the league’s president arguing for a reduction to five years.

Proença also took the opportunity to address other tax issues, such as lowering IRC and IRS rates or lowering tax on sports practitioners, in order to equate football with other fields of activity, making Portuguese clubs more competitive.

It was Pedro Proensa’s last test in this area, and now the deadline for submission of proposals by political parties has passed.