Hangin' With ... Giampiero Rinaudo Blue Pitch Will Not Be Forced Out Of Ibrox Chung Mong-Joon Announces Candidacy Roc Nation Rides Alliance Into Football NBA Signs Marriott For Int'l Games New Stadium In Monterrey Opens Sunday Berlusconi To Sign Binding Pre-Accord Executive Transactions Names In The News AFL Clubs Rebel Against 'KFC' Tax
SBD Global/April 29, 2014/FinancePrint All
F1 CEO Bernie Ecclestone "has denied accusations that he avoided a potential tax bill" of more than £1B ($1.6B) by settling a long-running investigation by U.K. tax authority HMRC into his affairs for £10M ($16.8M), according to Sean Farrell of the London GUARDIAN. In a BBC Panorama program to be broadcast on Monday night, "it is claimed that HMRC investigated the Ecclestone family's tax affairs for nine years" before offering to settle for a £10M payment from the family trusts in '08. The program said that "the trusts make that much in interest every six weeks." Ecclestone said that "the payment was not a settlement to call off the investigation and that it was instead the amount HMRC found he had underpaid in tax." Ecclestone: "The Revenue investigates you and if they find out something is wrong they say, 'This is wrong and you should have paid this amount' and you pay it" (GUARDIAN, 4/28). The BBC reported Panorama's investigation goes back to '95 when Ecclestone "secured ownership of the lucrative TV rights of Formula 1." Shortly afterward "he moved this prize asset offshore, giving the rights to his then wife, Slavica." She transferred them to a family trust in Liechtenstein, "before selling them for a huge profit," free of U.K. tax. It "may be the biggest individual tax dodge in British history," and is legally watertight provided Ecclestone did not set up, or control, the trust. Barrister and tax expert Jolyon Maugham said this was a "pretty substantial" loss of tax. Maugham: "I'm certainly not aware of anything else remotely approaching that sort of magnitude, in my fairly extensive experience" (BBC, 4/28). In London, Martin Evans wrote Ecclestone claimed that "he had given away his fortune to avoid inheritance tax laws which he considered unfair." Swiss lawyer Frederique Flournoy disclosed details of the regular payments to Ecclestone from his ex-wife "and also revealed that the HMRC had reached a secret deal with the motor racing boss." In a statement, a lawyer for the Ecclestone family trusts said, “Mr Ecclestone has not exerted, and has never sought to exert, any control over the management of the trusts" (TELEGRAPH, 4/28).
The German Football League (DFL) "will reportedly change the distribution of TV money in the Bundesliga," according to the SID. In order "to provide clubs with greater planning security, the DFL will implement a new regulation." Starting with the '14-15 season, clubs "will receive TV money based on their standings at the end of the prior season." It means that "when clubs do their budget planning for the '15-16 season in the spring of '15, they will use their standings and corresponding TV money revenue from the '14-15 season" (SID, 4/28).
The revenues of Ligue 1 side Paris St. Germain, the French club whose prospects have been transformed since Qatar Sports Investments took control three years ago, "exceeded those of its smallest Ligue 1 rival by a factor of 20" in the '12-13 season, according to David Owen of INSIDE WORLD FOOTBALL. Excluding transfers, the French champions reported revenue of €399.6M ($553M) for the period, compared with just €19.7M ($27.2M) for AC Ajaccio, "the Corsican club with the smallest turnover of the 20 then in the league." The figures illustrate just how polarized "the finances in the top tier of French football have become." By comparison, revenue generated in '11-12 by the biggest club in the EPL, ManU, "amounted to about six times the corresponding figure for the smallest club, Wigan Athletic." Further "emphasizing the financial chasm between PSG and its league rivals," only two other clubs -- Marseille and Lyon -- had revenues that exceeded even €100M ($139M). Average turnover for the other 19 teams in Ligue 1 totaled just over €47M ($65M) -- "less than one-eighth of PSG's revenue" (INSIDE WORLD FOOTBALL, 4/28).