What is 1212, the controversial decree that rose from the ashes and Milei seeks to turn around to leave Chiqui Tapia in check

The war between Government and the Argentine Football Association (AFA) is declared and each action that arises from one trench finds a response in the other. The theater of operations is football and the conflict is the introduction of Sports Joint Stock Companies (SAD). They are chess moves that, depending on the movements of each piece, take a step of attack or defense.

That is why the decree that is under discussion has an unequivocal background: the increase in taxes on clubs represents a financial drowning in the future. If the clubs do not have the means to pay obligations, they go into debt and if they go into debt, the SAD appear as the salvation to solve these types of problems with fresh money. This is not a simple reductionism but a history that has been going on for more than 20 years. and adds six presidents in the timeline.

It bore the signature of Eduardo Duhalde and remained with the rest of the elected presidents: Nestor Kirchner and the two periods of Cristina Fernandezuntil that of Mauricio Macriwho repealed it. Was Alberto Fernandez during his tenure who restored it reloaded as DNU 510, precisely the one that now Javier Miley try to cancel it.

1212 is a declaration of principles. “Non-profit civil associations, such as entities affiliated with the Argentine Football Association, have contributed to the educational process of man”begins the decree and offers the essential feature by which, from that moment, a regime of perception and retention was established for the income of personal contributions and differential employer contributions.

In objective terms, the counterpart that the State assumed for said contribution from the clubs between November of last year and April of this year was $7.091.928.560as stated in the provision published in the Official Gazette. In subjective terms, the same text indicates that the figure constituted “a loss in the general regime.”

Where do the numbers come from? Of the difference between what the clubs pay and what they would have to pay if they did not have the special regime. The AFA is the withholding agent for 7.5 percent of the gross amount received from different incomes.

Applies to the proceeds from the matches, the television rights of the National Team, of the Professional League, First National, B, C clubs, along with the Federal A Tournament and the Women’s First Division. The same percentage goes to the transfers of professional footballers and to the official sponsorship of the tournaments.

That is, for every 1,000 pesos, the AFA retains $75 which it transfers to the public coffers. Without 1212, the bill would be different: for every 1,000, approximately you would retain just over $300. From that perspective, the Government understands that it lost 7 billion.

The original 1212 left out the C, the Federal Tournament and the Women’s Tournamentbut the one that included them in 2023 also expanded the scope of 7.5 percent to income from “bets of all kinds that occur around football activity.” In addition, an additional rate of 0.50 for the cancellation of all pre-existing debts.

The State distributes the proceeds to the funds of the National Employment Fund, Argentine Integrated Pension System, Family Allowances Regime and Pami. With the sums, the contributions are paid first and then the contributions, proportionally to each regime.

It applies to both AFA employees and club employees: footballers, coaches, teachers, administrators, teaching staff. There are clubs that have more than 2,000 employees from different areas.

It might be thought that 1212 is conceptually twinned only with those clubs that defend the exclusivity of non-profit civil sports associations, however There are no detractor leaders.

Andrés Fassiin Workshops, such as Sebastian Veronin Estudiantes, perhaps the only two that took up the flag that the Government planted when last year it established acceptance by the AFA as a necessity and urgency, also benefit from the regulations.

The Government’s intention is to create a Committee to discuss the reformulation of the regime to “diagram an efficient, sufficient and sustainable system for its replacement.” However, it should already exist, given that the revoking decree contemplates it in its article 9. Of course, in this case, the Government sets the course for the AFA: it can choose its representatives, under certain conditions.

There must be three: one from promotion and two from the First Division – it is not clear whether from the Professional League or the Women’s League – and one of them must be selected from among the three clubs “that prove to have had the greatest number of members during the year 2023.”

In the AFA there is still silence. But judging by the reaction on social media from the Treasurer Pablo Toviggino It will be a matter of waiting for the next missile to come out. “He who humiliates himself to avoid war will have humiliation first and then war!!! Let’s go COMMANDER!!!“, posted the leader who, until now, has never shown a white handkerchief as a sign of surrender.