Rio Ferdinand and Andy Cole: Top footballers face losing millions of pounds in investment scandal
Footballers can’t stop losing money at the moment. A number of top footballers face losses of around £100m after piling cash into film schemes recommended by two financial advisers.
Former England stars Rio Ferdinand and Andy Cole as well as Match of the Day pundits Danny Murphy, Martin Keown and Robbie Savage are involved, according to an investigation by the Sunday Times.
The financial advisers at the heart of the scandal are David McKee and Kevin McMenamin. Their firm Kingsbridge Asset Management made over £5m in commission on the players’ investments before they tanked or were sent tax demands after the government challenged the schemes.
Kevin Campbell, the former Arsenal and Everton striker, who invested in five film schemes and faces losses of up to £7m, is now at the centre of bankruptcy proceedings. Campbell alleges that he and other footballers have been the victims of “appalling mis-selling”.
A spokesman for McKee and McMenamin issued a strong denial and said “without exception” the pair’s clients were always advised of the suitability and risks of the schemes and were advised that such investments needed to be part of a balanced portfolio.
Around 100 players are believed to be affected. Their investments were also supplemented by lending from banks, with Coutts having lent £40m to Kingsbridge.
The loss of £100m could prove to be an optimistic estimate.
Stuart Cotton, a former senior HMRC investigator who now represents several players, has estimated the total losses and tax liabilities each player is facing from film scheme investments. He told the Sunday Times:
The estimated £100m is just a fraction of the losses. From what I have seen the total liabilities will be well over £1bn. These players were sold film tax schemes which were totally inappropriate, especially for those at the end of the career.
It comes just four days after judge ruled that Richard Rufus, once voted Charlton Athletic’s greatest ever defender, had lost £9m of investor's money in a ponzi scheme.