Tax officials raided West Ham and Newcastle football clubs yesterday in an international criminal investigation into suspected income tax fraud.
Dozens of officers swooped on the stadiums of the two teams at about 8am and made “several arrests”, including the Magpies’ managing director Lee Charnley.
Raids also took place in France. The Standard understands that the role of leading football agents in player transfers is a main focus of the investigation. The inquiry is understood to have originated in France.
In total more than 180 officers were involved in the raids in England and France, which have sent shockwaves through the sport.
HMRC said it had “arrested several men working within the professional football industry for a suspected income tax and national insurance fraud”.
Its statement went on: “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.
“The French authorities are assisting the UK investigation, have made arrests and several locations have been searched in France. This criminal investigation sends a clear message that, whoever you are, if you commit tax fraud you can expect to face the consequences.”
About 50 officers raided West Ham’s London Stadium in Stratford, while staff at St James’ Park in Newcastle were told not to come into work after about 10 HMRC officials arrived at the ground.
The Hammers’ Rush Green training ground and Newcastle’s Darsley Park training facility were also raided. The arrests come towards the end of a season that has seen Newcastle win promotion from the Championship to the Premier League but West Ham struggle to secure their place in the top flight in their first campaign at their new home.
It is understood tax officers are investigating transfers dating back as far as seven years at both West Ham and Newcastle. The investigators have reportedly demanded details of every transfer deal undertaken by the clubs over that period and seized computers and business and financial records.
Mobile phones have also reportedly been confiscated. Newcastle is owned by the Sports Direct tycoon Mike Ashley. West Ham is controlled by businessmen David Sullivan and David Gold.
Charnley, 39, has been at St James’ Park for virtually all his working life in various roles and has been a director since 2008. Before Ashley took over, he was deputy to chief operating officer Russell Cushing. Prior to his promotion to his current position he was the club’s football secretary. A West Ham spokesperson said: “The club is co-operating fully with HMRC to assist their enquiries. No further comment will be made at this time.”
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