Former football directors investigated by Insolvency Service

Wednesday 14th September 2011 Four former directors of Luton Town Football Club (LTFC) have been disqualified from acting as directors or in any way managing or controlling limited companies.An investigation into their activities was conducted by the Insolvency Service which found that, between July 2004 and February 2007, the directors were deemed to have breached Football Association (FA) and FIFA rules and regulations on payments to football agents.The FA enquiry found that LTFC had dealt with unlicensed football agents and made payments of £157,000 through its holding company Jayten Stadium Limited, using funds provided by LTFC which should have been paid by LTFC itself and routed through the FA. During the same period, the directors had also caused or allowed LTFC to trade at the risk and detriment of HM Revenue and Customs (HMRC), which was owed just over £3.5 million. They had arrears with PAYE and NIC within a few months of starting to trade and recently had not declared or paid the company’s VAT liability. The court heard there was a pattern of non-payment and chasing from HMRC.Robert Burns, head of investigation and enforcement services at the Insolvency Service, stated on their website that: “One of the main purposes of the Company Directors Disqualification Act is to ensure that proper standards of conduct of company directors is maintained and to raise those standards where appropriate.”William John Tomlins, the former Chairman of LTFC, was disqualified for 6 years, Derek Robert Peter, the former Chief Executive and a chartered accountant, was disqualified for 7 years, while Richard Sidney Bagehot and John Mitchell were each disqualified for 3 years.Robert Burns added: “These disqualifications should serve as a reminder that the Insolvency Service will investigate unacceptable conduct by company directors regardless of the nature of the business involved.”

LTFC started trading in mid-2004 and on 22 November 2007 went into administration owing its creditors approximately £7m.

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Posted in: directors,football,former,Insolvency,investigated,service

Football legend Colin Hendry discharged from bankruptcy

The retired Scottish footballer Colin Hendry has officially been discharged from bankruptcy, to the annoyance of creditors who will only recoup £36,000 of the £2.1 million he owes.

Hendry, who formerly captained both Scotland and Blackburn Rovers football teams, was forced into bankruptcy in June 2010 after his debt problems spiralled out of control. The former defender was said to have turned to alcohol and gambling to cope with the death of his wife, Denise, in July 2009.

By the time he was declared bankrupt, Hendry had racked up £1.3 million in tax debt problems with HM Revenue and Customer (HMRC). He also owed £35,000 to his brother, £10,000 to the parents of his late wife and £65,000 to his late father’s estate. A number of Hendry’s most pressing debt problems are said to have been caused by the former footballer squandering his wealth on gambling.
After the custom 12 month period, Hendry has now been discharged from bankruptcy. This news has angered his creditors, after it was revealed that the retired star will only be paying back less than 2 per cent of his original debt.

One of Hendry’s former friends, Hector McFarlane, was owed £95,000 by Hendry. He is reportedly furious that the ex-player lived and continues to live a luxury lifestyle but will not be fully paying back his creditors. McFarlane told the Daily Record:
“I am just flabbergasted. I stand to get back £1800 of the money I loaned him. It’s an absolute disgrace.”
“My wife and I have not received one penny of the £95,000 he owed us, while he can get on with his life.”

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Posted in: Bankruptcy,Colin,discharged,football,Hendry,legend

Football legend's £2m debt write-off sparks fury

Former Scotland and Blackburn Rovers captain Colin Hendry has been discharged from his bankruptcy and will only have to pay back £36,000 of a £2.1 million debt.

Hendry, who also played for Glasgow Rangers, turned to drink and gambling after the death of his wife Denise and was declared insolvent in June of last year.

Creditors were contacted by Hendry’s solicitor in writing to inform them that the retired star would be paying back £1000 pounds a month for the next three years – less than 2 percent of the original debt.

One of the creditors, Hector McFarlane, is a former friend of Hendry and claims that the ex-player borrowed £95,000 from McFarlane and his wife in the knowledge that his debts were going to force him into bankruptcy.

Mr McFarlane was incredulous when he spoke to the Daily Record: "I am just flabbergasted. I stand to get back £1800 of the money I loaned him. It's an absolute disgrace."

McFarlane also claimed that Hendry, who is a football pundit for ESPN, was still able to live comfortably, despite the repayments he has to make: "His lifestyle has hardly changed," he said.

"He lives one of the best lifestyles of people I know. I gather he gets more than £1000 a game as a TV pundit.

“My wife and I have not received one penny of the £95,000 he owed us, while he can get on with his life.”

The largest of Hendry’s creditors was HMRC, owing them £1.3 million, but he also owed £65,000 to his late father's estate, £35,000 to his brother and £10,000 to Denise's parents.

The case for his bankruptcy was brought forward by the spread betting firm Spreadex.

Hendry’s luxury home in Lytham, Lancashire was sold but it was reported that the sale was only enough to pay off mortgages and secured loans on the property.

Denise died in 2009 and Hendry admitted to falling into a destructive cycle of gambling and alcohol abuse because of his grief to the Daily Record: "I did drink quite a lot initially. And I gambled - not as badly as has been reported.

"I'm not a bad guy. I've made mistakes in my life, like most people have."

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Posted in: football,legends,sparks,writeoff

'Wannabe' football tycoon is bankrupt

The man who used the services of a convicted criminal in an attempt to take over Sheffield Wednesday has been bankrupt.

Geoff Sheard’s bid for the club was fortified using the services of a convicted money launderer. Mr Sheard used a fake letter from an offshore Caribbean bank in his bid for Sheffield Wednesday, and is also suspected to have fronted a bid to take over Newcastle United.

In 2008, after it was revealed by the Yorkshire Post that a bank letter sent to Sheffield Wednesday claiming that Mr Sheard had 100 million euros available for investment was fraudulent – it had in fact been produced by criminal financier Richard Frank Downes, Sheard’s involvement with the club bid came to an abrupt halt.The Dominican Republic bank which was said to hold the funds for the Sheffield Wednesday takeover was not in fact operational.Not long after this incident, it was uncovered that Mr Sheard had also been taken to court over a string of personal debts. A series of county court judgements included a number of charges on Mr Sheard’s former home near Lancaster. It is understood that the residence has since been repossessed, The Yorkshire Post reports. It was in fact after these revelations that Mr Sheard was reported as having been the front man in a failed bid to take over Newcastle United. It has now been revealed that Mr Sheard filed a bankruptcy application in Application. The order was then made at Lancaster County Court. It is not known how many creditors were affected by the bankruptcy, but it is expected that Mr Sheard’s debts run into several hundreds of thousands of pounds. The bankruptcy is due to be discharged 12 months after the date of the original order, pending the outcome of inquiries by the Insolvency Service.
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Championship football club has £2.7m debt wiped

Wednesday 8th June 2011

A major creditor for a Championship football club has swapped part of its debt for equity and a stronger presence on the club’s board.

Mike Hall, co-owner of Cardiff City creditor PMG, has rejoined the club’s board as a director after an agreement between his firm and the football club’s Malaysian backers.According to the South Wales Echo, PMG has turned a “significant sum” of owed debt into equity.A statement on the club’s website went on to say PMG – a property firm owned by Mr Hall and Paul Guy – also backed the decision to hire forensic accountants to examine paperwork dating from former owner Sam Hammam’s time in charge.It said: ‘As a result of a series of meetings and given the undertakings and plans by the Malaysian investors, PMG have agreed to convert a significant amount of their debt into shares while also agreeing a new payment plan which will improve the balance sheet.‘As part of the agreement Mike Hall will join the Board and will work with the Malaysian investors to address the key historical issues facing the club, namely Langston. PMG fully endorse the stance taken by the Board in appointing forensic accountants investigating Sam Hammam and his business dealing whilst Chairman of Cardiff City Football Club.’In May 2010, PMG converted £300,000 of money owed into 1,912,046 new ordinary shares and restructured the balance owed to be repayable by September 30, 2013.Mr Hall told the South Wales Echo: “Paul and I have restructured the plan and turned a significant sum into equity to back the Malaysians going forward, which will hopefully secure the future of the club.“We’re looking forward to working hand-in-hand with the Malaysians and are delighted to restructure the debt and solve what was an ongoing problem for the club.“At the end of the day I’m a fan – I’m interested to see who our next manager will be, which players we will sign and I want us to do what Swansea did.”At the time, it was said a further £2.7 million of the PMG loan could be converted into shares by notice in writing to PMG up to December 31, 2011.It is not clear how much of that £2.7 million has now been converted and seen Mr Hall appointed to the board.Keith Morgan, a football finance expert, said: “It is likely to be at least £2.7 million of the £9 million they are owed, or just as likely to be more. It may be they have extended the deadline for that debt to be paid as well. They are significant shareholders going forward, which suggests they are in it for the long term.“And the only way they will get any benefit from those shares is if they get into the Premier League – otherwise they are worth the square root of nothing.”
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England football legend faces financial ruin

A former England football legend has submitted a debt payment schedule in the hope of avoiding financial ruin.

Paul Gascoigne owes the taxman £32,000 and has been given another chance to fend off his impending bankruptcy.If his proposed timetable to manage the debt is accepted in court, it means the 43-year-old Geordie will be able to avoid bankruptcy proceedings.The case against Gascoigne – who is known to football fans worldwide as ‘Gazza’ – was adjourned for a further two weeks at a brief hearing at the High Court in London last week.The proceedings followed a hearing in February when Deputy Registrar Clive Jones agreed to adjourn a petition for bankruptcy for six weeks.But last Wednesday Mr Registrar Jaques heard that a proposal has now been put forward by Gascoigne which would enable him to pay off the full debt to HMRC within a structured timescale.If his proposal is accepted it would ‘stay’ bankruptcy proceedings against him, meaning an automatic injunction would halt the actions of his creditors.Gascoigne was once one of football's highest-paid stars and at the peak of his career he was reported to be worth £14 million. When he was transferred from Newcastle United to Tottenham Hotspur in 1988 he became a millionaire. He later secured a £1.25 million deal with Italian club Lazio.As a key player in the England squad, he won sponsorship deals worth more than £5 million with sports clothing manufacturers and Walkers crisps.Gazza then went on to play for Rangers, Everton and Middlesbrough before having short spells at Burnley, Chinese side Gansu Tianma and Boston United.Since quitting football he has battled alcoholism and had a bizarre involvement with the armed stand-off between the police and killer Raoul Moat.He arrived at the scene in Northumberland and offered to help with negotiations, bringing the murder suspect a "can of lager, some chicken, a mobile phone and something to keep warm”.In December, Gascoigne was given a suspended prison sentence and an alcohol treatment order after admitting drinking and driving.
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Posted in: England,faces,financial,football,legend