James McFadden declared bankrupt with £2.5 million in debts
Former Scotland international James McFadden has been declared bankrupt after accumulating debts totalling more than £2.5 million, reports BritPanorama.
The 42-year-old, currently a pundit for Sky Sports, submitted a voluntary bankruptcy application following £2,594,192 in outstanding liabilities.
McFadden’s insolvency follows a near-collapse seven years prior, when he struggled to clear substantial tax obligations. The national agency Accountant In Bankruptcy authorised his bankruptcy application last month.
Despite these financial challenges, McFadden recently provided commentary for Rangers’ Scottish Premiership fixture against Aberdeen. His financial issues stem from investments in UK film production partnerships in the early 2000s, promoted to footballers for tax relief. However, HM Revenue and Customs later classified several of these schemes as tax avoidance, leading to substantial bills for those involved.
A spokesperson for Opus Restructuring confirmed McFadden’s voluntary sequestration in Scotland, attributing it to losses linked to historical property and film investment ventures alongside related tax matters. His financial troubles have necessitated support from family for settling debts.
Paul Dounis of Opus Restructuring has been appointed trustee to recover funds owed to McFadden’s creditors. However, the former Motherwell striker reported having no assets available for debt settlement. Interestingly, his sequestration order identifies him as a commentator, referring to a business named Sports and Media Consultancy Limited, which his wife Gillian directs and recorded £25,796 in its recent financial statements.
McFadden’s situation is not unique among former professionals. His ex-teammate Barry Ferguson was declared bankrupt in 2017 with debts of £1.4 million, and others, such as Chris Sutton, have faced similar financial difficulties due to the film investment schemes. Notably, his impressive Scotland career included 48 caps and 15 goals, with a standout moment being a stunning strike that secured a 1-0 victory against France during the Euro 2008 qualifiers.
Such financial missteps underscore a cautionary tale for athletes navigating investments post-retirement, weaving a complex narrative where sport and finance often intersect, revealing how even celebrated careers can take unexpected turns.
