GOAL

Monaco have been dealt a major blow with the news that a French court has quashed their exemption from the country's 'super tax'.

The Conseil d'Etat has ruled the Ligue 1 side's agreement with the French Football Federation "irregular and illicit"

The principality club last year agreed to pay the French Football Federation (FFF) €50 million to be allowed to continue operating within Monaco, which is a tax haven, and thus avoid paying the 75 per cent tax rate on individual annual incomes in France which exceed €1 million.

Rival Ligue 1 clubs have long argued that the exemption gives Monaco on unfair advantage in terms of player recruitment, as it allows them to offer higher wages, and called for Les Rouges et Blancs to be forced to relocate their business operation.

The Conseil d'Etat has now deemed Monaco's agreement with the FFF to be "irregular and illicit" and given the two parties four months to resolve the issue so as to avoid any potential disruptions of next season's schedule.

Monaco is a sovereign city-state and has long been considered an attractive destination for footballers because it does not collect income tax.

The club spent heavily upon securing its return to Ligue 1 in 2013, with the likes of Radamel Falcao and James Rodriguez arriving at the Stade Louis II for massive fees.

However, the Dmitry Rybolovlev-owned outfit have cut their spending dramatically over the past 12 months and offloaded both of their Colombian superstars, as well as Geoffrey Kondogbia, who joined Inter for €40 million earlier this month.