League Championship side Newcastle United Managing Dir Lee Charnley has been arrested and EPL club West Ham United's "offices raided as 180 officers from Great Britain's tax authorities swooped on targets" in the U.K. and France, according to Ziegler, Caulkin & Jacob of the LONDON TIMES. Several men working in professional football have been arrested in the raids by U.K. tax authority HMRC, "believed to include football agents." Officers have also "seized computers, mobile phones and paperwork." Similar raids have taken place in France as part of a coordinated plan with French authorities and "arrests have been made." It is understood HMRC officers arrived at the home of Charnley, who earns £150,000 ($192,700) a year at the club, in north Newcastle Tuesday evening. Raids then took place at Newcastle's offices at St. James' Park and the training ground Wednesday. Around "50 officers descended on the Olympic Stadium in London at 8am with warrants to search West Ham's offices and access computer records" (LONDON TIMES, 4/26). In London, David Conn reported HMRC said in a statement, "HMRC has arrested several men working within the professional football industry for a suspected Income Tax and National Insurance fraud." West Ham declined to comment on reports that 50 HMRC officers raided its London Stadium home but confirmed in an official statement, "The club is cooperating fully with HMRC to assist their enquiries." HMRC is known to have been conducting "wide-ranging investigations into the tax affairs of football clubs, and the tax paid on multi-million pound transfers and image rights deals," as public attitudes have "hardened against tax avoidance and evasion" (GUARDIAN, 4/26). REUTERS' reported the HMRC added, "180 HMRC officers have been deployed across the UK and France today. Investigators have searched a number of premises in the North East and South East of England and arrested the men and also seized business records, financial records, computers and mobile phones. This criminal investigation sends a clear message that, whoever you are, if you commit tax fraud you can expect to face the consequences" (REUTERS, 4/26).
CHELSEA VISIT: In London, Samuel Lovett reported officers from HMRC visited Chelsea "amid its wider investigation into fraud in English football." Chelsea's premises were "not subject to a search warrant and no arrests were made" but HMRC visited offices belonging to the club. A Chelsea spokesperson said, "In connection with its wider investigation HMRC has requested certain information which the club will provide." It is understood the suspected income tax and National Insurance fraud amounts to £5M ($6.4M) (INDEPENDENT, 4/26).
FRENCH ARRESTS: Also in London, Burt, Chazan & Tweedale reported four arrests have been made in France "in connection with suspected tax fraud in player transfers," a French police source said. The four people arrested were described as "agents for Premier League players." They were not named. Ligue 1 side Olympique de Marseille, which has been "involved in several deals with Newcastle and West Ham," is understood to be at the center of the criminal investigation. On the French side, the probe is being "led by national fraud investigators and a task force that investigates Corsican gangs." A source close to the investigation said, "Organized criminal gangs are suspected of targeting senior club officials, agents and other parties." Neither the Metropolitan, City of London, nor the Northumbria Police force were involved in the raids on Wednesday morning, it has been confirmed (TELEGRAPH, 4/26). In London, Lawton, Hope, South & Allen reported senior Marseille directors have been charged as part of the probe, "which has seen some 800 bank accounts and 110 companies examined" (DAILY MAIL, 4/26). In London, Ed Malyon reported earnings from image rights are "treated as a separate income stream from cash taxed at domestic rates for playing for a team." Players can pay different tax rates on image rights earnings from commercial deals. HMRC "questioned clubs and players in the past when a player lacking a public profile claims that significant earnings are from image rights" (INDEPENDENT, 4/26).
LEE CHARNLEY: In London, David Bates reported Charnley has "spent more than half of his professional life at the club." Since being promoted from club secretary three years ago -- and aided by the departures of Joe Kinnear and John Irving -- he "has solidified his position" as Newcastle Owner Mike Ashley's "key ally." Charnley has been described as "very quiet" and "unlikely to play the figure of grandstanding" football exec. A source said, "He never puts his head above the parapet and he doesn't get involved in the politics. He's been at the club for a long time and he joined when he was only a young lad. He likes to keep in the background and he doesn't give interviews" (LONDON TIMES, 4/26). In London, Ahmed & Houlder reported Charnley, a director at the St. James' ground since '08, was appointed by Ashley as managing director in '14. He "played a key role" in appointing Rafa Benítez, the manager who guided the club to promotion to the Premier League. Charnley is also "closely involved in the team's player transfer strategy" (FINANCIAL TIMES, 4/26). Also in London, John Wardle reported in a "rare interview," Charnley once offered an insight into his "low-key approach to the job." He said, "I'm not someone who courts the media or has relationships with journalists giving them on or off-the-record information about players or any other elements of club business. I want to go about our or my business quietly and professionally. That's where I want to be" (TELEGRAPH, 4/26).
