Household names among up to 200 players impacted
A group of former Premier League footballers has been left in financial turmoil after losing tens of millions of pounds through ill-fated property investments recommended by financial advisers.
Up to 200 players have been affected, with the likes of Wayne Rooney, Rio Ferdinand, Danny Murphy and Martin Keown all investing in failed property ventures that attracted £417 million from a total of 589 sports stars, according to reports by the BBC and the Daily Mail.
Many of those impacted have joined the V11 campaign group, comprising individuals who invested with Kingsbridge Asset Management in the 1990s and 2000s. The company, founded by David McKee and Kevin McMenamin, established itself as a go-to firm for footballers seeking to secure their post-retirement futures. Its reputation was bolstered by endorsements from prominent figures, including the League Managers Association, and a client list boasting more than 360 players. Word of mouth, particularly among influential dressing-room leaders, helped Kingsbridge’s reach spread “like wildfire”.
Players such as Murphy, Michael Thomas, Rod Wallace and Brian Deane - members of the campaign group - were drawn in by the promise of robust financial stewardship. “We should have felt protected,” Deane told the BBC, echoing the sentiments of many who believed their financial security was assured by the firm’s expertise.
Aside from property, players were also advised to invest in film-financing schemes, both with their own money and with bank loans. In 1997, the Treasury introduced tax relief on investments in domestic films to boost the UK film industry.
From the pitch to property
Part of the investment strategy revolved around property, both domestic and overseas. Footballers were encouraged to channel significant sums into developments, often with the allure of government-backed tax incentives, including property with a 40 per cent tax rebate that did not need to be repaid for 15 years.
In one notable instance, four members of the V11 purchased apartments in the Monte Resina development in Spain for €618,500 each. “They brought it to me and the other lads like it was a very exclusive development that was just too good to miss,” Deane recalled.
Yet, beneath the veneer of exclusivity, alleged conflicts of interest emerged. Documents later revealed that McKee and McMenamin originally owned the Spanish apartments and had appointed a company run by McKee’s wife to manage them. Independent valuations subsequently determined that the properties had been significantly overpriced, raising questions about the integrity of the advice provided.
Stateside, the story was no different, according to reports. Former Derby County and Everton defender Craig Short was steered towards a Florida development, Charlotte Harbor, with promises of annual returns between 15 and 20 per cent. The reality proved far bleaker, with Short ultimately surrendering the property and absorbing a substantial loss. “The first [property] had no value whatsoever,” he told the BBC. “I had a huge mortgage on it which I just couldn’t afford. The easiest thing for me to do was walk away, give the keys back.”
The taxman cometh
As the property market faltered and HM Revenue & Customs intensified its scrutiny of tax-advantaged investment schemes, the financial foundations of many players crumbled. The average tax bill for each member of the V11 group now exceeds £1 million.
Despite being informed by City of London Police that they were “victims of crime”, the players continue to face aggressive tax recovery efforts. The emotional toll has been severe, with several former stars speaking candidly about the mental health challenges that have accompanied their financial woes.
McKee and McMenamin said in their statement to the BBC: “Film schemes attracted huge support from all areas of the financial services industry.
“Any losses suffered by clients ... are deeply regrettable but were as a consequence of changes in HMRC policy and the worldwide property market collapse in 2008.
“Kingsbridge had well over 2,000 clients, many of whom received very similar advice. The vast majority of these clients remain satisfied with the way that Kingsbridge handled their affairs.”
The BBC reported that City of London Police opened an investigation in 2018, after the issue was referred to them by Andy Burnham, now Mayor of Greater Manchester.
Two years later, the investigation was closed because of “insufficient evidence”.
No charges have ever been brought against Kingsbridge staff, including McKee and McMenamin, and they deny any wrongdoing.
