Former footballers lost millions in investments

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Danny Murphy, Michael Thomas, and Rod Wallace are members of the V11 campaign group, which consists of eleven football players who invested with Kingsbridge Asset Management during the 1990s and 2000s.

Murphy, a former England midfielder and now a pundit for Match of the Day, claims to have lost approximately £5 million due to “financial abuse.”

David McKee and Kevin McMenamin, the individuals behind Kingsbridge, assert that they "deny any wrongdoing."

They stated to the BBC: "Throughout the process, Kingsbridge operated in good faith, outlining the risks and opportunities before and after any investment was finalized."

As many as 200 footballers could have been impacted, with some losing their homes and facing bankruptcy.

They are now pursued for millions in taxes, despite being informed by the City of London Police that they were "victims of crime."

Football's Financial Shame: The Story of the V11 demonstrates how unity within the group fortified them and motivated them to publicly share their experiences. This program is set to air on BBC Two and the BBC iPlayer on Tuesday, September 2, starting at 21:00 BST.

'It spread rapidly - through conversation'

Brian Deane, another member of the V11 group, was the scorer of the inaugural Premier League goal in 1992. This marked the dawn of a new era where money began to pour into football, leading to unprecedented wealth for players.

"We should have felt secure," remarked Deane, who, like the others, anticipated that the investments would guarantee his financial stability.

"Kingsbridge appeared to align with what everyone desired at that moment, which was having someone manage your finances for life after playing."

Kingsbridge Asset Management was established in Nottingham by McKee and McMenamin in the same year the Premier League was launched.

Their website advertised a clientele of over 360 footballers.

"If they had the most influential figure in the locker room, it created a sense of safety," Deane recalled.

"It spread rapidly - through conversation."

'These individuals have devastated our lives'

Tommy Johnson, a former striker for Aston Villa and Celtic, was introduced to Kingsbridge by his agent.

"They served as my financial advisors and those of many players at Villa," he explained.

Johnson vacationed with McKee and McMenamin, and they were even invited to his wedding.

"People may claim they were merely financial advisors," he stated. "They were much more than that; they were friends. These individuals have devastated our lives."

McKee and McMenamin told the BBC: "We were privileged throughout our careers to have earned the trust of our clients... that trust was never compromised."

The firm gained legitimacy through its connection with the League Managers Association.

Kingsbridge managed the LMA's website and received backing from then-chairman Howard Wilkinson, who formerly managed Leeds United and the England national team.

Wallace became the record signing for Leeds in the summer of 1991.

"It was a significant advantage for us - knowing that managers were involved," he mentioned.

My wife and I were aiming to start a family. It felt quite natural, to simply embrace the idea.

It was in 2008 that Wallace began to realize his investments were faltering. At one time, he held a net worth of £1.9 million. By February 2024, he received a bankruptcy declaration.

"We reside in Surrey," he mentioned. "It's been a pleasant place to live, but we must move forward due to an eviction notice and having no funds in the bank. We won't have a place to stay."

Wallace was also an investor in Kingsbridge.

"It was my initial investment in shares," he stated. "I was told they collapsed. Just gone like that."

Wilkinson had shares as well.

However, a letter reviewed by the BBC indicates that he received £2,033 monthly for four years from Kingsbridge, in acknowledgment of his decision to retain his shares solely for the benefit of the LMA's business collaboration with Kingsbridge, despite the shares losing their value.

The LMA commented: "Any agreement between David McKee and Howard Wilkinson... was a personal arrangement... to which the LMA was not involved."

McKee and McMenamin declared: "Howard Wilkinson did not refer any clients or business to us."

Wilkinson was contacted for a response but did not send a statement.

Where did the investments go?

In 1997, the Treasury initiated tax relief for investments in domestic films to help enhance the UK film sector.

"What the government failed to foresee was the misuse of these tax benefits turning into financial products," remarked investment fraud attorney Ben Rees.

Kingsbridge suggested clients invest in film financing programs, using their own funds as well as bank loans.

Wallace invested over £2 million in this area.

Investors were subsequently encouraged to put money into real estate with a 40% tax rebate that did not require repayment for a period of 15 years.

Four individuals from the V11 group purchased apartments for 618,500 euros in a project located in Spain called Monte Resina.

"They presented it to me and the others as if it was a very exclusive development that was impossible to miss," recalled Deane.

Nevertheless, records reviewed by the BBC reveal that McKee and McMenamin were the original owners of the apartments and had hired a company managed by McKee's wife to oversee them.

"Discuss the issue of conflict of interest," stated investigative journalist Richard Belfield.

"McKee and McMenamin set the prices for the apartments, subsequently advising their clients to purchase them. These prices were significantly inflated, as revealed by a later independent appraisal."

Craig Short, a former defender for Derby County and Everton, was encouraged to invest in another project located in Florida, known as Charlotte Harbor.

"The initial [property] held no value at all," he remarked.

"I was burdened with a large mortgage that I simply couldn't manage. The simplest solution for me was to walk away and return the keys."

When HMRC eventually pursued the taxes owed related to the film schemes, many of the investments had lost their value, leaving players unable to settle their tax obligations.

Rees became acquainted with the V11 group through a charitable organization.

"I believe every professional adviser can make errors, but the sheer quantity and persistence of these intricate, high-risk, unregulated investments were entirely inappropriate for young, inexperienced footballers," Rees shared.

"When you begin to notice investments where the advisory firm has a stake in the projects or is otherwise involved, that's not merely a mistake."

In their statement to the BBC, McKee and McMenamin remarked: "Film schemes garnered substantial interest from across the financial services sector.

"Any losses experienced by clients... are truly regrettable but were due to changes in HMRC policy and the global property market crash in 2008.

"Kingsbridge had over 2,000 clients, many of whom received very similar counsel. The vast majority of these clients remain content with how Kingsbridge managed their affairs."

Have there been any actions taken by the police?

The City of London Police initiated an investigation in 2018 after the matter was referred to them by Andy Burnham, who is now the Mayor of Greater Manchester.

Two individuals from the East Midlands were taken into custody.

However, two years later, the investigation was closed, with the police concluding that there was "insufficient evidence to support a realistic prospect of conviction."

City of London Police stated: "The decision... was made at the commander level and... was also backed in a strategic investigation review by a senior officer from an outside force."

No charges have ever been filed against Kingsbridge personnel, including McKee and McMenamin, who assert their innocence.

'HMRC will likely pursue, I have nothing to offer'

The average tax obligation for each member of the V11 group exceeds £1 million.

Former Fulham midfielder Sean Davis owes £330,000 and is currently employed as a painter and decorator.

"I began receiving the brown envelopes in the mail, and it was quite a shock," he commented.

"The unfortunate aspect is, I'm happiest when I've had a drink because it helps me forget. But then when I wake the next day, that's when I'm at my lowest. I genuinely feel like ending it all."

Meanwhile, Thomas mentioned he was "living like a clown."

"On the surface, there's laughter and good times, but beneath it all, I often contemplate many things... and I consider myself fortunate," shared the former midfielder for Arsenal and Liverpool.

"It's challenging to find the words to express how I feel, yet I realized, 'I must speak out for those who are enduring pain quietly.'"

When the brown envelopes landed at Short's residence, it was revealed that his tax debt amounted to £1.6 million.

He was served with a bankruptcy petition on Christmas Eve, and enforcement agents appeared at Oxford United's training facility, where he serves as a coach.

"I experience intense cycles of depression, sorrow, and frustration," he mentioned. "It seems HMRC will likely take action; I have nothing to offer them."

In a response, HMRC stated: "It is our responsibility to collect taxes when they are owed by law.

"We understand that facing an inquiry and a substantial tax obligation can be overwhelming, and we are fully dedicated to identifying and assisting customers who require additional support."