Agents who orchestrated Gareth Bale’s world record Real Madrid transfer investigated for tax avoidance
Stellar Group is at the centre of a probe by HM Revenue and Customs into its financial affairs, but there is no suggestion Gareth Bale is under suspicion
Agents behind some of the biggest transfers in British football are being investigated for alleged tax avoidance.
Stellar Group – which helped negotiate Gareth Bale’s world record switch to Real Madrid from Spurs and represents England trio Joe Hart, Glen Johnson and Phil Jagielka – is at the centre of a probe by HM Revenue and Customs into its financial affairs.
There is no suggestion that the players, or their clubs, are being probed at this time by the taxman.
Stellar Group is co-owned by businessmen Jonathan Barnett, 64, and David Manasseh.
Investigators are looking at all payments made by clubs to the sports management company over the last four complete tax years.
That includes Bale’s move to the Spanish capital last summer – a deal which reportedly earned Barnett £10million.
Sources say that the HMRC probe will look into how Stellar Group has declared all the income in its accounts.
In February 2012 it was reported that the taxman was carrying out a widespread inquiry into football finances.
Stellar Group is now understood to have appointed a top accountancy firm to negotiate with HMRC on its behalf.
Barnett was suspended by the Football Association for 12 months and fined a record £100,000 in 2006 for his role in organising a secret rendezvous between his client Ashley Cole and Chelsea representatives. Barnett defended his involvement in the transfer from Arsenal, stating: “I did what I had to do for my client.
“I represented Ashley Cole. Time has proved if you look at what he’s achieved at Chelsea, it was the right move.”
Manasseh was warned about his future conduct over the Luton Town bungs affair in 2006.
Luton were hit with a 10-point reduction after it was found that they gave agents, including him, £160,000 in unlawful payments.
The investigation has been categorised as a Code of Practice 8 – meaning it is likely to be settled using a civil route, rather than involve the agents giving evidence under a formal caution.
A source close to the investigation said: “HMRC are in the process of auditing every payment made to agents in an attempt to tackle tax avoidance loopholes.
“HMRC inspectors have moved away from footballers themselves and are increasingly focusing on whether agents and advisors are abusing the system.
“Where high profile sports agents are involved, it is usually where equally high profile sports people are involved and the sums of money involved are substantial.”
HM Revenue & Customs is unable to comment on the investigation due to taxpayer confidentiality rules.
Latest Premier League figures show that England’s top-flight clubs paid £96million to agents between October 2012 and September 2013.
Asked to comment on the HMRC probe into their company a spokesman for Stellar Group said: “Our comment is no comment.”
