Former England and Liverpool football icon John Barnes has publicly disclosed the financial missteps that culminated in his bankruptcy declaration last September. The 62-year-old winger, who made 79 appearances for his country, revealed that a series of disastrous investments across the globe significantly contributed to his current financial predicament.
The Bankruptcy Declaration and Company Debts
Barnes was officially declared bankrupt in September following the collapse of his media firm, John Barnes Media, which had accumulated debts totalling £1.5 million. The company has since been liquidated, and the ex-footballer had previously received a three-and-a-half-year ban from serving as a company director due to these outstanding obligations.
This represents the latest chapter in Barnes's lengthy financial struggles, marking his second bankruptcy after an initial declaration in 2009 that he attributed to a "tax oversight" and was subsequently overturned. Since 2010, he has faced six separate bankruptcy petitions from creditors.
Revealing the Investment Mistakes
During a candid appearance on the Overlap's 'Stick of Football' podcast, Barnes explained how he was persuaded to invest in various schemes worldwide. "I got caught with a lot of coffee [investments] in Brazil, a lot of investments all over the world," the football legend admitted. He described how individuals beyond his football agent approached him with investment opportunities, including property ventures such as villas in Florida.
Barnes drew parallels between his experience and the V11 group - former professional footballers who lost millions through investments in Kingsbridge Asset Management during the 1990s and 2000s. However, he clarified that while he suffered substantial losses, he didn't pursue the same recovery path as the V11 group members.
The Tax Repayment Struggle
The former Liverpool star has been transparent about his ongoing battle with HM Revenue and Customs, revealing that he has been repaying tax authorities for eight years. Since 2017, Barnes claims to have repaid approximately £2.2 million, continuing to make monthly payments of £10,000 until recently.
"From 2017 up until last year, I had finally paid off about £2 million, but then the tax man wanted last year's money, after cashing in everything I had to pay them," Barnes explained. He described liquidating his assets, including properties, to meet his tax obligations, leaving him with only his primary residence and vehicle.
A Decision Against Early Bankruptcy
Barnes revealed that he could have declared bankruptcy in 2017 and potentially retained £2 million, but chose instead to continue repayments. "What I really should have done is gone bankrupt from 2017, honestly I would have had £2 million I could have done whatever I wanted with. But what I didn't want to do is to be seen not paying it," he stated.
The football ambassador expressed concern about public perception, particularly during challenging economic times when many struggle with basic expenses. "I see how hard it is for people all over when they can't pay their heating bill and stuff. And here am I having money and now I'm not paying the tax. So the only reason I did it was because of that," Barnes added.
Financial Advice for Current Players
Reflecting on his experiences, Barnes contrasted the financial guidance available to today's footballers with that offered during his playing career. He suggested that modern players benefit from professional financial advice from a young age, whereas his generation often relied on recommendations from "mates who knew somebody."
Barnes's Football Legacy
Despite his financial difficulties, Barnes remains one of English football's most celebrated figures. During his illustrious career, he won the First Division twice with Liverpool, lifted two FA Cups and one League Cup, and was named Player of the Year in 1988. After playing for Watford, Liverpool, Newcastle, and Charlton, he later managed Celtic, Jamaica, and Tranmere Rovers, and currently serves as an ambassador for Liverpool Football Club.
The former winger's openness about his financial struggles provides a cautionary tale about investment decisions and tax management for professional athletes and the general public alike.
