Danielle Ford and Riocard Hoye explain why HMRC’s big match against the football industry is just kicking off.
HMRC has always maintained an interest and focus on the football industry in the UK and this has recently extended to issuing Code of Practice 9 (COP 9) enquiries.
The main reason this industry will continue to be a target, simply, is the money produced within it.
In 2021/22, the Premier League alone generated £5.5 billion in revenue, which includes players, managers and other staff on eye-watering wages. There are similarly large numbers involved in transactions such as transfers and contract renewals.
In addition to the money, the industry is unique and contains lots of complexities. Whilst transactions between clubs in different leagues within the UK are common, many transfers and deals involve clubs overseas, particularly in the Premier League and Championship. This offshore element adds another layer of complexity and presents its own challenges.
A further complication is that transactions often involve lots of parties. Whilst a player transfer should theoretically involve the player, the buying club and the selling club, in reality each party will have agents, lawyers and other intermediaries assisting in the deal.
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