A new course has recently been outlined by UEFA, the governing body for European football, which aims to provide footballers with sound financial advice. The course is called the UEFA Financial Management Training programme and is being launched in conjunction with Santander, with the support of a number of retired football players, including ex-England international, David James, and Spanish midfielder, Gaizka Mendieta.
It aims to put a stop to footballers overspending and avoid them getting negligent financial advice. It will also provide information on how they can successfully run their own business and the fundamental aspects of investing and saving for the future.
In support of UEFA’s programme, former goalkeeper, David James, commented:
“Not being an expert in finance, the difficulty is you listen to something and think it’s going to be right.
“It sounds so good and you get involved and then it doesn’t work out. As the saying goes, if it’s too good to be true, it probably isn’t true.
“There’s a standard number and the more money there is in football, the higher that standard number will get. We know that’s not the case. My advice, and something I’ve learned later on in life, is that if someone gives you a contract or a deal, read it. Even if you don’t understand it, at least get some knowledge of what you’re about to do.
“Then go to someone with the expertise to actually go through it properly. Too often it’s a mate, a friend or a relative, who says: ‘Do this’, ‘Do that’. You trust them, you do it and it doesn’t work out. If in doubt – which should always be the case if you’re not an expert – get someone who knows the right answer.”
Why the need for the programme?
The programme is being rolled out partly due to the amount of high profile football players who have struggled with their finances over the last number of years. In November 2018, it was reported by the Guardian that over 500 retired footballers have lost an estimated £1 billion as a result of bad investment and tax advice.
In the Guardian article, it is reported that a number of footballers were advised to invest in tax efficient schemes after having received financial advice and have subsequently been forced to pay high tax penalties enforced by HM Revenue & Customs (HMRC). As a result, a number of players, including former Manchester United and Newcastle striker, Andy Cole, have taken legal action against the financial professionals who provided the advice, seeking compensation.
Negligent financial advice claims
Whether you are a footballer or not, you may seek financial advice from an accountant or financial adviser at some stage in your life. This may be for a variety of reasons, including
- Tax advice;
- For support in the preparation of annual accounts for a business or individual;
- To undertake an audit function; or
- To advise on other financial implications during the purchase of a business.
Professionals who specialise in providing financial advice, owe a duty of care to their clients to perform their work with the appropriate care and skill. If they fail to do this and the client then suffers a loss as a result, they may have a valid claim for professional negligence against them.
In order to prove that they have breached their duties, it is usual for a client to obtain a report from another accountant or financial adviser to comment on whether the work undertaken fell below the standard to be expected.
How can Nelsons help?
Our expert team are experienced in every type of professional negligence claim. If you feel that you may have a claim for professional negligence then we can evaluate your case and assess your chances of success and the timescales and costs involved.