Former Manchester United and Arsenal stars ‘face ruin’ after failed investments reaching £100m
The company at the centre of the revelations denied any wrongdoing
Some of the best-known names in British football face losing millions of pounds after being allegedly advised to invest in “risky” projects that have subsequently failed or were hit with tax bills.
Rio Ferdinand and Andy Cole, both former England and Manchester United stars, and Kevin Campbell, the former Arsenal and Everton striker, were among 100 players advised by Kingsbridge Asset Management and are now reportedly face losses totalling £100 million.
Documents seen by The Sunday Times reportedly show that the company made £5 million in commission advising players to invest in film schemes and property which either subsequently failed or were hit with tax demands from HM Revenue & Customs (HMRC).
Such schemes have been accused of tax avoidance before by both HMRC and the head of the public accounts committee Margaret Hodge.
Kingsbridge Asset Management company directors David McKee and Kevin McMenamin have denied any bad practice.
Now many such schemes invested in by the stars have folded – with Mr Cole facing substantial losses and tax liabilities after investing in film schemes worth almost £8 million.
The biggest investor was Mr Ferdinand, with £24 million in four different partnerships. According to The Sunday Times, he has made a loss on two properties Kingsbridge Asset Management advised him on in Spain and Florida.
Players claimed the investments had been “mis-sold” to them.
Mr Campbell, who is at the centre of bankruptcy proceedings facing losses of up to £7 million over film schemes, strongly condemned the firm.
“When I see the paperwork, it’s horrendous. I am not one to be bitter, but £7 million is a lot of money,” he said according to The Sunday Times.
Yet a spokesman for company directors Mr McKee and Mr McMenamin said clients were always advised that such investments needed to be part of a balanced portfolio.
“Without exception clients were always made aware of the products in which they were invested,” the company said in a statement.
It added that the pair sold film schemes when the financial industry considered such products had benefits, according to The Sunday Times.
The private bank which lent £400 million to Kingsbridge for the schemes, Coutts, said it had not been asked to advise footballers on their investments.
Players added that many of their colleagues who had been hit by the losses would be too ashamed to speak out.
