RSM Tenon appointed to handle Lee Hendrie bankruptcy
ADVISERS from RSM Tenon have been appointed to manage the finances of former England and Aston Villa midfielder Lee Hendrie after the player was declared bankrupt with debts of more than £200,000.
A Bankruptcy Order was made against Hendrie in the Central London County Court after he failed to meet his obligations to repay HM Revenue and Customs.
Nick Simmonds and Mark Sands of RSM Tenon have been appointed as joint trustees to deal with his affairs.
Mrs Registrar Derrett said the Bankruptcy Order was the result of no contact from Hendrie. No letters had been returned and no payments made, the court was told.
It is thought the footballer was trying to sell his £1.7m home in Solihull to help the trustees cover his debts, but it appears that any sale may not even cover the mortgage
RSM Tenon said the player’s debts had apparently been a result of a tax scheme Hendrie was advised to enter into which was rejected by HM Revenue and Customs, leaving an unpaid tax bill which lead to the petition.
Investments made during his peak years, in properties and film related partnerships, went bad, leaving no money for Hendrie to turn to when times were tough.
The midfielder had earned millions while playing for Aston Villa, when his contract was thought to be worth £24,000 a week at the peak of his career. He went on to play for Sheffield United, Leicester City and Blackpool. After a stint in Indonesia, he now plays for the Blue Square BET Premier team Kidderminster Harriers.
Mr Sands, head of Bankruptcy at RSM Tenon said: “In 2010, the average salary of a player in the UK’s Premier League was £1.47m a year, 56 times the average UK wage. However, as their wages have increased so have the number who become insolvent and we have certainly had an increase at RSM Tenon in the last three years.
“The main reasons for this can be unsustainable consumption, falling incomes after leaving the top flight, poor investment decisions and the lack of financial awareness.”
In the last five years there have been other high profile cases involving Premiership players including ex-Liverpool star John Arne Riise, Brad Friedel, the former Aston Villa now Tottenham and USA goalkeeper, former Manchester United, Newcastle and Northern Ireland player, Keith Gillespie and former Liverpool and England winger John Barnes.
“This is also a phenomenon mirrored in the non-footballing world – many solicitors, doctors and even bankers have found themselves in extreme financial difficulty because their salaries have slid; but have continued to retain their lifestyle trappings,” added Mr Sands.
