Former Everton and Scotland international James McFadden has been declared bankrupt after accruing personal debts totalling more than £2.5 million, according to new reports.
From Pitch Glory to Financial Turmoil
The 42-year-old, who enjoyed a prominent playing career, is understood to have applied for bankruptcy with debts of £2,594,192. The financial collapse stems from suspect investments in UK film production partnerships made during the early 2000s, which were later deemed a form of tax avoidance by HM Revenue and Customs.
McFadden, who signed for Everton in 2003 after being named Scottish PFA Young Player of the Year, also had spells at Birmingham City and Sunderland. He later returned to Scotland for stints at Motherwell, St Johnstone, and Queen of the South before retiring in 2018.
A National Hero's Financial Fall
Beyond his club career, McFadden earned 48 caps for Scotland and scored one of the nation's most celebrated goals: a stunning winner against France in a 2008 European Championship qualifier. Since hanging up his boots, he has worked as an assistant coach for the national team and built a successful media career as a pundit for broadcasters like Sky Sports.
However, like many high-profile ex-players, he has been unable to avoid severe financial difficulty. Insolvency specialists Opus Restructuring have been appointed to handle his case. A spokesperson stated: 'We can confirm that James McFadden has voluntarily entered sequestration in Scotland. This follows losses connected to historic property and film investment schemes in the early 2000s and associated tax matters.'
A Wider Pattern in Football Finance
McFadden's situation is not isolated. He is among a significant number of ex-professionals who faced massive tax bills after investing in schemes promoted as offering lucrative tax breaks. In 2018, HMRC took him to court over an unpaid bill, which was settled by a family member.
His case echoes that of other players featured in the BBC documentary Football's Financial Shame. Former Liverpool midfielder Danny Murphy revealed he lost up to £5 million due to what he termed 'financial abuse'. Murphy is part of the 'V11' group of ex-players who invested with Kingsbridge Asset Management.
It is believed around 200 former players, including stars like Wayne Rooney and Rio Ferdinand, were advised to invest in similar film and property schemes, with the average subsequent tax bill for the V11 group estimated at £1 million.
