Former footballers have come forward to speak out about what they describe as “financial grooming” that led them down a dangerous path of failed investments and tax avoidance accusations. These former players claim that their involvement in dodgy schemes resulted in enormous tax penalties and a series of personal and financial crises.
A group of politicians, campaigners, and legal experts convened in Westminster to hear testimonies from individuals who had fallen victim to such schemes. The focus of the discussion centered on the difficulties faced by former footballers who were misled by financial advisers during their playing careers and then subsequently faced harsh scrutiny and punishment from HM Revenue & Customs (HMRC).
The Professional Footballers’ Association (PFA) chairman, Ben Purkiss, has called for an independent review into the union’s role in advising players. The gathering revealed that more than 500 former footballers may have lost up to £1 billion due to bad investment advice, which has led to devastating consequences for their personal and financial well-being.
Several former players, including Andy Cole, Brian Deane, Michael Thomas, and Danny Murphy, attended the meeting, sharing their harrowing experiences. Murphy, who now works as a football pundit for BBC and TalkSport, discussed his own struggle with a £2.5 million tax bill after investing in a film scheme that promised lucrative tax breaks to investors. The scheme ultimately failed, leaving Murphy facing a massive financial burden. In 2019, Murphy lost a court case related to a £1 million loan he had taken from the private bank Coutts to fund the investment.
Deane and Murphy have been vocal in their efforts to raise awareness about the issue, with legal support from Carly Barnes-Short, a lawyer co-chairing an investment fraud committee with Conservative MP Sarah Bool. Barnes-Short condemned the exploitation of players by trusted financial advisers who preyed on their naivety. The committee has argued that it was unfair for players to be punished for investing in schemes that ultimately failed, leaving them with huge tax bills and penalties. The situation has drawn comparisons to the Post Office Horizon scandal, in which workers were wrongfully prosecuted for financial irregularities.
Murphy explained how young footballers, often fresh from their playing careers, were vulnerable to manipulation by financial advisers. He referred to the process as “grooming,” with advisers embedding themselves into players’ lives and earning their trust before steering them toward risky investments. The players were often left feeling foolish for falling into such traps, adding to the shame and distress of the situation. Murphy shared that many players had been driven to depression, anxiety, financial ruin, and family breakdowns as a result of their involvement in these schemes.
Deane, too, described the emotional toll of the experience, revealing that some of his friends had been pushed to the brink of suicide due to the financial fallout. He also highlighted the effect on mental health, relationships, and general well-being, noting that the situation had destroyed marriages and lives.
Labour MP Alex Sobel echoed Murphy’s concerns, calling the situation “financial grooming” and criticizing HMRC for targeting victims of fraud rather than the fraudsters themselves. He argued that the players were not at fault for their financial losses, as they had been deceived by fraudulent schemes. Lord John Mann, another critic of HMRC’s approach, questioned why the tax authority pursued what he called “notional income” from players, when the investments involved potential money that never materialized.
In response to the claims, a spokesperson for HMRC stated that they sympathized with individuals who had lost money in such schemes and handled these cases on an individual basis, ensuring that the wellbeing of taxpayers was taken seriously. However, they advised anyone concerned about a potential tax liability to contact them as soon as possible to discuss available options.
This ongoing issue has sparked calls for more robust protections for athletes and other vulnerable individuals against financial exploitation, as well as for a more compassionate approach from HMRC when dealing with the aftermath of such schemes.
