Former Everton star and Scotland international James McFadden has been declared bankrupt after accruing debts of over £2.5million, according to reports.
The 42-year-old signed for Everton in 2003 after winning the Scottish PFA Young Player of the Year in 2003, before later spells at English teams including Birmingham City, and Sunderland.
McFadden later returned to the Scottish Premiership in 2013 for the second of three stints at Motherwell, and run-outs at St Johnstone and Queen of the South.
But the former player’s most memorable outings have arguably been for his national team, where he earned 48 caps and scored one of their most famous and celebrated goals in their 1-0 Euro 2008 qualification tie against France.
Since retiring in 2018, McFadden has worked as an assistant coach for Scotland, as well as carving out a successful career in punditry for broadcasters including Sky Sports.
But as with a number of high-profile footballers, McFadden is believed to have been unable to avoid falling into financial difficulties, on the heels of suspect investments made early on in his playing career.
Scotland legend and former Everton star James McFadden has applied for bankruptcy
The former Tartan Army assistant coach (pictured in 2018) has accrued debts worth £2.5m
As per the Sun, McFadden has applied for bankruptcy with debts of £2,594,192, and has been declared insolvent after being unable to pay off staggering tax bills.
McFadden is thought to have stumbled into difficulties after investing in UK film production partnerships in a bid to earn lucrative tax breaks in the early 2000s.
HM Revenue and Customs have since declared similar schemes to be a form of tax avoidance.
Insolvency specialists Opus Restructuring have been drafted in to recover cash for McFadden’s creditors, with a statement from a spokesperson reading: ‘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. All appropriate legal processes are being followed.’
The former professional was previously taken to court by HMRC in 2018 over an unpaid bill, which was later settled by a family member.
Former Liverpool and Tottenham star Danny Murphy revealed that he had lost up to £5million due to ‘financial abuse’ due to investments made during his career in September, during an appearance on BBC documentary Football’s Financial Shame: The Story of the V11.
The V11 campaign group contains Murphy and 10 other ex-professionals who invested with Kingsbridge Asset Management in the 1990s and 2000s.
Some 200 ex-players, including Wayne Rooney and Rio Ferdinand, are believed to have had their investments affected as a result of Kingsbridge advising its clients to invest in film financing and property schemes in a bid to claim advantageous tax relief.
The average tax bill for members of the V11 group is thought to be around £1m.
