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Tribunal finds deceit from Newcastle United, agents
England - 07 September, 2006
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England's Football Association was deceived by Newcastle United and leading football agents about how deals were done.
A VAT and Duties tribunal said the association was misled about the deeds because the agents and clubs were breaking rules in regards to agent conduct.
The tribunal, a legal body, decided last month that Newcastle United is not entitled to reclaim VAT on payments made to agents in 21 deals between 2001 and 2003.
Newcastle United told The Guardian it intends to appeal the judgment. The FA declined comment.
In looking in to the claim, the tribunal found that on forms which must be lodged with the FA to register transfers and new contracts, Newcastle United "falsely stated" that the agents had acted solely for the club, and not for the players. Russell Cushing, the club's chief operating officer and a director of the football club, said this was done "to avoid fouling the rule that an agent can only act for one party on a transfer."
Cushing said the rule, established by Fifa and maintained here by FA, is routinely broken. He argued that the agents for both Newcastle United and the players on the same deals.
"It is generally acknowledged," Cushing said, "that the rules cannot accurately reflect the global business we now operating in."
For the FA to accept that the deals were within the rules, the club stated that the agents had acted for the club and not acted for the players. The tribunal found this was untrue and that the agents were representatives of the players, and that no written agreements with the club existed.
The agents, who did not declare to the FA that they had acted for their players, were said by the tribunal to be: "In breach of the [FIFA] regulations, having failed to adhere to the Code of Professional Conduct, by behaving untruthfully."
The judgment illuminated more than has ever previously been known about how clubs and agents do deals. Cushing admitted that forms Newcastle completed were "technically incorrect."
A VAT and Duties tribunal said the association was misled about the deeds because the agents and clubs were breaking rules in regards to agent conduct.
The tribunal, a legal body, decided last month that Newcastle United is not entitled to reclaim VAT on payments made to agents in 21 deals between 2001 and 2003.
Newcastle United told The Guardian it intends to appeal the judgment. The FA declined comment.
In looking in to the claim, the tribunal found that on forms which must be lodged with the FA to register transfers and new contracts, Newcastle United "falsely stated" that the agents had acted solely for the club, and not for the players. Russell Cushing, the club's chief operating officer and a director of the football club, said this was done "to avoid fouling the rule that an agent can only act for one party on a transfer."
Cushing said the rule, established by Fifa and maintained here by FA, is routinely broken. He argued that the agents for both Newcastle United and the players on the same deals.
"It is generally acknowledged," Cushing said, "that the rules cannot accurately reflect the global business we now operating in."
For the FA to accept that the deals were within the rules, the club stated that the agents had acted for the club and not acted for the players. The tribunal found this was untrue and that the agents were representatives of the players, and that no written agreements with the club existed.
The agents, who did not declare to the FA that they had acted for their players, were said by the tribunal to be: "In breach of the [FIFA] regulations, having failed to adhere to the Code of Professional Conduct, by behaving untruthfully."
The judgment illuminated more than has ever previously been known about how clubs and agents do deals. Cushing admitted that forms Newcastle completed were "technically incorrect."
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