The investigation into the tax affairs of professional football clubs by U.K. tax authority HMRC is scrutinizing the basic salaries paid to academy scholars to "decide whether they meet minimum wage regulations," according to Sam Wallace of the London TELEGRAPH. The HMRC investigation "came to prominence" last month when League Championship side Newcastle United and Premier League club West Ham were raided in a joint operation with French authorities involving 185 officers, but "the scope of its inquiries are understood to be much wider." Academy scholars' wages at EPL and Football League clubs are set at £145 ($187.67) per week with an increase to £155 ($200.62) in the second year. HMRC is understood to be investigating "whether the number of hours a week that scholars spend training and playing games equates pro rata to the government minimum wage," set at £3.50 ($4.53) an hour for an apprentice. The Premier League and Football League "base the weekly scholar salary on a 40-hour week" at the £3.50 rate. It has been a "prerogative of both leagues" that all scholars should be paid the same rate although once a player turns 17, he is able to sign a professional contract. As a response to HMRC inquiries, the Premier League "will propose to raise the weekly wage" to £165 ($213.56) for a first-year scholar and £175 ($226.50) for a second-year scholar to give the clubs a "margin of error" if boys are spending long periods traveling or away at tournaments. The league is "eager that there is no question that boys are paid less than the minimum wage" (TELEGRAPH, 5/9).
