Jump to content
Sign in to follow this  
Gemmill

Newcastle And Agent's Fees

Recommended Posts

Newcastle tax case exposes millions paid to agents

Matt Scott

Friday August 25, 2006

The Guardian

 

 

The astonishing scale of agents' fees paid by Newcastle United has been laid bare by a VAT tribunal decision that has gone against the club. Newcastle had appealed against a decision by the HMRC, formerly Customs & Excise, which had prevented the club from reclaiming VAT on agents' fees. However, the most fascinating insight came in Newcastle's submissions.

The club provided documentary evidence on Newcastle's activities involving agents, and the enormous sums paid to middlemen in negotiations of transfers and player contracts. Over a 32-month period to January 2004, Newcastle dispensed with more than £3.5m in agents' fees and associated VAT payments.

 

 

One set of invoices over the 18 months between May 17, 2002 and November 1, 2003, demanded £775,500 in fees and VAT on behalf of Stellar Group, the agency run by Jonathan Barnett. The fees pertained to the contract renegotiation for a single player, identified in the tribunal verdict only as "Silver".

The north-east club's dealings with Stellar, who represent Newcastle players such as Kieron Dyer and Titus Bramble, made the agency the biggest earner over the period. In December 2001, another invoice for £50,000 plus VAT was lodged for the transfer of "Gold" to St James' Park.

 

The transfer of "Green" saw Stellar request separate payments on November 1 in 2002 and 2003 of £80,000 and £90,000 respectively. VAT was requested on top.

 

But Stellar were not the sole agents acting for the club's players. Proactive, for whom Paul Stretford is the highest-profile director, invoiced them for £100,000 plus VAT in July 2002 for the transfer out of Newcastle of a player known as "Yellow". The ISM sports-management group also invoiced for £50,000 plus VAT for the same transfer, only 12 months after demanding £75,000 plus VAT for taking the same player to the club.

 

It is not only the corporate agencies who drew large sums from Newcastle. David Giess, who represents former Newcastle players such as Lee Bowyer through his firm Skillequal Ltd, invoiced for £300,000 for arranging the free transfer of "Red" in May 2003.

 

Newcastle's expenditure was exposed after it appealed against a previous decision that had left the club unable to reclaim £547,440 from the taxmanfor the period between April 2001 and January 2004. A spokeswoman for the club did not respond to calls last night.

 

The verdict could lead to multi-million pound liabilities for Premiership clubs in respect of VAT erroneously reclaimed on agents' fees. Newcastle's transfer activity continues. Yesterday they completed the £10m transfer of Obafemi Martins from Internazionale after the striker passed a medical and signed a five-year contract

 

Crazy money.

Share this post


Link to post
Share on other sites

Bloody disgrace

 

On this one the Yanks have it right - all transfers in American Footie and Baseball go through the Governing body and agents fees are paid by the player ONLY

Share this post


Link to post
Share on other sites

We spent an additional £3.5m over nearly 3 years on bringing players in, seems all right to me.

 

What's the problem with it specifically, or is it just giving that kind of money to agents?

Share this post


Link to post
Share on other sites
We spent an additional £3.5m over nearly 3 years on bringing players in, seems all right to me.

 

What's the problem with it specifically, or is it just giving that kind of money to agents?

184761[/snapback]

 

Giving that kind of money to agents tbh. £300k handed over for arranging a free transfer?? £775k for renegotiating a contract for a player already on our books??

Share this post


Link to post
Share on other sites

Yeah, I don't like to see them gatting payed more than a kick in the face, but from a business point of view I'm not bothered.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

Sign in to follow this  

Recent tweets

Toontastic Facebook

Donate to Toontastic

Keeping the lights on since... well ages ago
TT-Staff


×