Issue 3 | Summer 2012
Thinking
beyond
tomorrow
In this issue page 2
A welcome to Hawk-i from Peter Murley
page 3
Hawksford and the environment
page 4
Crown Dependencies – International finance centres, not ‘tax havens’
page 6
Why tax in sport and media is a hot topic
page 8
Guest column: To have and to hold: the legal status of nuptial agreements – Kate Dixon, Senior Solicitor, Pinsent Masons
page 9
United Arab Emirates and Switzerland offices – market update
page 10
An interview with Duncan Revie, CEO Soccerex
Fiduciary Family Office Wills & Probate Succession Planning Employee Solutions Funds Advisory Media & Sports L-S&S GmbH
part of the Hawksford Group
| Summer 2012
Welcome to our summer edition of Hawk-i. With the European Championships just behind us and the Olympics fast approaching, some of our articles in this quarter’s Hawk- i have a sporting theme. We have two guest columns in this issue: an article about prenuptial agreements from Kate Dixon at Pinsent Masons and an interview with Duncan Revie, CEO of Soccerex. We also have features on why tax in sport and media is a hot topic and Crown Dependencies as international finance centres, not tax havens.
Since our last issue I am delighted that we have been named one of Private Client Practitioner’s Top 25 Trust Companies for the third consecutive year. We have also been listed as a finalist for Owner-Managed Trust Company of the year for this year’s STEP Private Client Awards, which are held in September. We have a number of exciting projects happening and I am pleased to be able to share some of our progress with you. New systems In the last edition of Hawk-i, I mentioned that our new administration system would shortly be tested in one of our client teams. The basic system has been in place for over a month and we are delighted with the progress. We are looking forward to adding the system enhancements for testing over the next few weeks. We will then be able to introduce the full system to the rest of the business confidently, ensuring a smooth transition to the new technology and processes, and enabling us to improve our efficiency and client service.
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UAE We have now moved into a new office in Dubai, giving us the extra space we need. The office is centrally located and is able to accommodate extra staff as we grow our business in the Gulf region. Client insight research This year’s client insight project is now underway. We will shortly be contacting many of our clients and advisers, asking them to share their views on what we do well and what we need to do better. The research will take place online and will ensure we continue to improve and meet the changing needs and expectations of all of our clients. If you would like to take part and share your feedback, please email matthew.morel@hawksford.com Thought paper Our positioning statement ‘Thinking beyond tomorrow’ reinforces our approach of looking towards the future. We plan for tomorrow. In recognition of this, for the first time, we’re bringing together a unique collection of essays by leading contributors. These essays look at ‘tomorrow’ and what will happen in
different sectors and industries over the next twenty to thirty years. Our contributors look at areas such as education, finance, society, travel, the economy, sport and health. The essays are currently being collated and they make fascinating reading. As a preview, this issue of Hawk-i includes an interview with Soccerex CEO, Duncan Revie, as he looks at the future of football. We’re calling this collection of outstanding essays our ‘thought paper’ and will be launching it in the autumn in London at the House of Commons.
Hawksford and the environment Peter Murley Chief Executive Officer T: +44 (0) 1534 740132 E: peter.murley@hawksford.com
According to a recent BBC Online news article, there is a race going on between companies across a variety of sectors to develop and occupy the greenest office buildings in London. We can see evidence of this competitiveness in the form of two of the world’s largest accountancy companies. Before the fanfare had died down around the opening of KPMG’s ‘excellent’ BREEAM rated £340m ecooffice in Canary Wharf, competitor, PricewaterhouseCoopers unveiled its ‘outstanding’ BREEAM rated building.
The architect of the latter building, Richard Buckingham, acknowledges that the ‘green issue’ is increasingly important to the public and to clients of most businesses and suggests that one way to get ahead is to ensure you base your organisation at a sustainable address, sending a clear message. In 2006 we moved Hawksford into what I consider to be a sustainable building. Our offices have auto sensors in the meeting pods to save electricity, the air conditioning is centrally controlled to ensure consistent temperature is maintained throughout and we have implemented eco drive practices to ensure staff recycle as much as possible when putting cans, plastics and paper in the bins. However, is sitting yourself in a state of the art building where business contribution to global green issues should end? I don’t believe it is. Hawksford is a member of the Eco Active Business Scheme. As such, we have in place environmental policies and initiatives that confirm the importance of environmental awareness and protection at the heart of Hawksford’s business strategy. The policy covers five key areas of our operations: energy, transport, waste, water and procurement. Only by ticking all of these boxes can we genuinely call ourselves a sustainability conscious organisation. We recognise that responsible companies need to be aware of the environment and community within which they work and as such, we appreciate the importance of minimising the impact of our operations on the natural environment. It is also important to promote a culture of environmental awareness among our colleagues.
encourage cycling to work and operate a recycling scheme for paper, glass and cans. We recycle all unwanted furniture, use low-energy light bulbs wherever possible and have automated switchoff for unused lighting and electronic equipment. Procuring eco-friendly cleaning products is a must, as is the sourcing of environmentally friendly stationery products. We also support Jersey’s Transport and Technical Services (TTS) on an education and recycling initiative – The Hawksford Batteries not Excluded School Recycling Scheme. The project, which launched in December 2010 gives youngsters access to battery recycling receptacles at their schools. Increasing the number of batteries that are collected for recycling is extremely important as they contain potentially harmful chemicals and metals which should not be disposed of with normal household rubbish, which is sent for incineration. Batteries also contain chemicals and metals which can be separated for re-use during the recycling process. It’s estimated by TTS that island households use an average of 21 batteries per year, which equates to around 800,000 batteries being thrown away in Jersey every year. It is recognised that the financial services industry has a relatively low environmental impact compared to many other industries. However, we believe that this low level environmental footprint can be reduced and we are committed to finding ways to achieve reductions in the company’s impact on the environment, not only through our office based activity but away from work too.
At the office we have undercover bike racks, showers and changing facilities to
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| Summer 2012
Crown Dependencies – International finance centres, not ‘tax havens’ The Crown Dependencies - the Channel Islands and the Isle of Man - are selfgoverning dependencies of the Crown. They do not belong to the United Kingdom and nor are they represented in Parliament. They are not members of the European Union (“EU”). Instead they have particular constitutional relationships with the United Kingdom and a special status with the EU.
Julian Hayden Director T: +44 (0) 1534 740140 E: julian.hayden@hawksford.com
The position as to ultimate legislative authority has been the subject of constitutional review and is not straight forward. The matter was considered by the Royal Commission on the Constitution in 1973 and reviewed in 2002 by Jersey’s Attorney General in response to potential EU tax initiatives. By convention the exercise of the power of the Westminster Parliament to legislate for Jersey is restrained in domestic affairs, including taxation. Here, we are not dealing with any attempt by the United Kingdom to assert a legal supremacy over Jersey nor any attempt to legislate for Jersey against its will in relation to domestic matters.
This was negotiated when Britain decided to join the European Economic Community. The position is governed by Protocol Number 3 on the Channel Islands and the Isle of Man to the treaty of Accession (1972) under which, very broadly, the Islands fall within the common customs area and the common external tariff. No other EU provisions apply, although all EU citizens must be treated in the same way as those of the United Kingdom.
We are concerned with what may be seen as an attempt by the political system of the United Kingdom to “clamp down” on Crown Dependencies as “tax havens”.
A summary of the position of Jersey may be helpful by way of background as this article is written from a Jersey perspective.
It may be helpful to consider what might constitute a tax haven and then compare with the reality of the Crown Dependencies.
Its sovereign is the English Monarch. Jersey is part of the British Isles but it is not part of England, nor of the United Kingdom. It has its own legislature, which is able to make certain temporary laws, but permanent laws need the ratification of the English Crown.
A tax haven does not just offer the absence of taxation. It also connotes secrecy and an unwillingness to cooperate with other jurisdictions, especially in the exchange of information.
Jersey has its own Courts, with appeals in civil cases to the Judicial Committee of the English Privy Council.
'The reality is that the Crown Dependencies are well regulated jurisdictions that offer tax neutral environments in which enterprise can thrive and which are vital to maintain and attract international trade.'
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I suggest that this is entirely misplaced; that the Crown Dependencies are not tax havens but that they are international finance centres of the highest quality.
The reality is that the Crown Dependencies are well regulated jurisdictions that offer tax neutral environments in which enterprise can thrive and which are vital to maintain and attract international trade. The stability of the Crown Dependencies makes them ideal jurisdictions for the establishment of structures operating elsewhere, sometimes in jurisdictions that are themselves much less stable and where there is a clear need to be able to operate within a known and respected legal framework and with robust governance and regulation. They offer stability – both fiscal and political, allied with financial expertise and a level and quality of regulation that is internationally recognised.
They also offer tax neutrality which, coupled with stability, provides the key to the role of the Crown Dependencies in international business. Tax neutrality enables individuals and businesses to hold their assets in a form that does not escape tax but which avoids cumulative liabilities to tax, on the same income or gain in two or more jurisdictions. The Crown Dependencies provide a coherent legal framework for the ownership of assets across jurisdictions – a factor which is becoming increasingly important for both companies and for individuals with international profiles. Companies incorporated in the Crown Dependencies offer a tax-neutral means of accessing worldwide capital markets or of providing holding companies for international businesses. In the private client world of trusts and estate planning the work of the Crown Dependencies is less now about sophisticated tax planning and tax avoidance than ensuring the long term protection of wealth and family businesses, often across generations and in multiple jurisdictions. This is coupled with succession planning and the governance of wealth and business. Further, individuals and their families want trustees, company directors and advisers who are capable of adding real value. Within the Crown Dependencies, wealthy international private clients and their families can find expertise in wealth management, private banking and trusts coupled with security and stability. The IMF confirmed the rigour of Jersey’s anti-money-laundering rules and has referred to Jersey as a pioneer in tax-information exchange. Jersey has signed numerous tax information exchange agreements and is on the OECD’s list of jurisdictions that have substantially implemented internationally agreed tax standards. Further, Jersey was given the EU’s seal of approval in September last year by the EU Code of Conduct Group, confirming that Jersey has satisfied the Group that its corporate taxation is compliant with the Code of Conduct on Business Taxation. Jersey has done so while retaining its competitive position as a leading international finance centre.
On a much larger scale, banks in the Crown Dependencies provide huge sums to the City of London, which not only directly helps London as a finance centre but also provides capital for business worldwide. If anything, the banking crisis has highlighted the international benefits of this source of capital. According to the Foot Review, commissioned by the former Chancellor of the Exchequer in December 2008, 'the Crown Dependencies make a significant contribution to the liquidity of the UK market'.
' Jersey has signed numerous tax information exchange agreements and is on the OECD’s list of jurisdictions that have substantially implemented internationally agreed tax standards.' I hope this note gives a flavour of the positive reality of the Crown Dependencies as compared with perception in some quarters and the (at best) misunderstanding reflected in references to tax havens. The individual Crown Dependencies can point to their own levels of expertise, economic benefit and regulation. Their true status is well known to external professionals in the finance and fiduciary sectors but it seems that more work will clearly be needed when dealing with some politicians and the media. Perhaps one way forward lies in ever-closer cooperation to speak with one voice on these matters.
Jersey continues to honour – voluntarily – a commitment it has made to the EU member states by remitting retention tax.
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| Summer 2012
Why tax in sport and media is a hot topic In 2010 Usain Bolt did not compete at the Aviva London Grand Prix because the UK tax laws at the time meant he could potentially have lost more money than he would’ve earned from competing. Athletes competing in the UK are potentially liable for a 50% tax rate (reducing to 45% in 2013) on their appearance fee and prize winnings, as well as a proportion of their total worldwide earnings from sponsorship and endorsements. In previous years the tax charge on worldwide earnings was based on how many days of the year the sportsperson was in the UK. If for example they played in a one-week tournament in the UK, then approximately one-52nd of their worldwide endorsement income would be liable for UK tax. Additionally, there was a separation between ‘active’ and ‘passive’ exploitation of image rights, so only the income relating to the ‘active’ exploitation was taxed. The calculation subsequently changed to the proportion of UK based events the sportsperson partakes in, in proportion to their total worldwide events, disregarding any split between ‘active’ and ‘passive’ income. For example, if Bolt were to take part in 10 meetings worldwide, with one in the UK, the HMRC would have taxed him on one-10th of his worldwide earnings.
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This created significant and often disproportionate tax charges for certain sportspeople, and caused some to avoid the UK altogether; that is until the last budget was announced in March 2012. Hidden discreetly away in the budget was a sentence announcing that 'HMRC will revise its practice on the taxation of nonresident sports people to take training days into account when calculating the proportion of worldwide endorsement income subject to UK tax'. This will now create a proportionate result for many sportspeople and creates a significantly lower tax charge on their worldwide sponsorship. Tax exemptions for big tournaments in the UK The threat of the UK losing out on big tournaments due to tax reasons (as they did in the bid to host the UEFA Champions League Final of 2008) spurred the UK Government into making specific tax exemptions in order to host the 2011 UEFA Champions League Final at Wembley. The legislation included specific provisions that meant non-UK resident sportsmen (i.e. the Barcelona team) playing in the final would not be subject to UK tax on any of their worldwide income. A review by Mastercard of the 2011 Champions League Final estimated that the event was worth £45 million to the UK economy. Non-UK resident competitors at the forthcoming London Olympics 2012 and the UEFA Champions League Final of 2013 will also receive the same exemption. It should be noted that the exemption only applies to income which is related to duties or services performed by the person in the United Kingdom in connection with the Olympics or Champions League Final.
Carl McConnell Lawyer T: +44 (0) 1534 740262 E: carl.mcconnell@hawksford.com
If, for example, one of the athletes were to make an appearance for a fee or make some kind of endorsement while they were in the UK which was unrelated to the Olympics, they could be taxed on that income. This is quite straight forward where the person competes for prize money in another event during the Olympics, or exploits his image by modelling a designer brand which they endorse in a photo shoot. However, there is a grey area, where for example, an individual is invited to appear as a guest on radio or television and the content of the broadcast is not completely related to the Olympics. So, if for example, David Beckham had been invited to be part of the GB Olympic football team, and appeared on a TV chat show during the games, he would have to be careful about straying off topic from the promotion of the games as his appearance fee could potentially fall outside the tax exemption! Most sportspeople have a short career span which could end prematurely through injury for example. It is therefore important for them to maximise their revenue during their 10-15 year career in order to provide for their family for life. There are still ways of minimising tax through offshore image right structures, using pension schemes or a Qualified Non-UK Pension scheme (QNUP). Other than the potential tax benefits of setting up offshore structures, we have noticed that clients like the confidentiality of an offshore structure compared to using a UK company which has publicly available information on shareholders and finances. Clients who are regularly on international tours also prefer having
'Most sportspeople have a short career span which could end prematurely through injury for example. It is therefore important for them to maximise their revenue during their 10-15 year career in order to provide for their family for life.'
one port of call to administer their affairs, almost like a concierge service. The recent moves by the UK do appear to be attracting high profile sportsmen and women back to the UK, and the push to host major events shows how much the Government value the boost to the economy.
Case study: Hawksford works with a UK born professional motorcyclist who travels around the world racing and testing motorbikes on behalf of a racing team. Hawksford has set up a number of wealth structures for this individual to receive revenue from image rights, royalties and race winnings. These structures are tax efficient, taking advantage of double tax treaty planning opportunities. In addition, Hawksford really adds value to the client by offering concierge services, providing one point of contact wherever he is in the world. By way of example the client misplaced his credit card whilst travelling between jurisdictions; through Hawksford’s Media & Sports concierge service, a replacement card was arranged at short notice. We also were able to transfer emergency funds to the client until the card arrived at his location.
As the client is based in Europe for some time during the race testing period, he requested that we acquire a local residence for him to stay in when living there. Through Hawksford’s established network of professionals, we were able to find a suitable property, ensure that all of the appropriate legal structures were put in place, and any residency issues arising from him wanting to live in the purchased property were dealt with quickly. This type of dedicated concierge service is available to a wide range of professional people whose work takes them around the world. For example, it could help professional golfers, pro tennis players, formula 1 racing teams and even pop stars on tour.
Meet the Media & Sports team:
Steve Robinson Director T: +44 (0) 1534 740270 E: steve.robinson@ hawksford.com
Steve Carr Associate Director T: +44 (0) 1534 740273 E: steve.carr@ hawksford.com
Carl McConnell Lawyer T: +44 (0) 1534 740262 E: carl.mcconnell@ hawksford.com
Matthew Morel Head of Marketing T: +44 (0) 1534 740175 E: matthew.morel@ hawksford.com
Claire Reddington Senior Company & Trust Administrator T: +44 (0) 1534 740271 E: claire.reddington@ hawksford.com
Continued‌
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| Summer 2012
To have and to hold: the legal status of nuptial agreements Kate Dixon Senior Solicitor, Pinsent Masons, London E: kate.dixon@pinsentmasons.com
Pre-nuptial, postnuptial and separation agreements can save the often vast expense, and undoubted stress, of drawn out legal battles when a relationship ends. However, particularly for multi-jurisdictional families, without careful consideration, nuptial agreements can themselves give rise to lengthy and expensive disputes. Traditionally, pre and post-nuptial agreements have been the preserve of wealthy families, frequently entered into to protect inherited family assets. British couples have generally lagged behind those in Europe and further afield, where nuptial agreements are more common. They are not without their difficulties however – for example, if they are improperly executed or if an attempt to vary the agreement goes awry. An imperfect nuptial agreement can add another costly layer of complexity to divorce proceedings. On matters of divorce, the English courts are considered by some to be more sympathetic to the poorer spouse. This has led to a number of spouses casting around for a sufficient connection to this country to allow the English courts to hear his or her case, particularly in cases where the financial stakes are high. For those families that live internationally,
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perhaps travelling between a number of countries for work, if one of those countries is England, the chances of the English courts being able to hear the case are increased. As a result, the English courts have heard a wealth of cases where couples assert contrary claims to the assets of the family. In most of these, the assets or the family or both, originate from a different country. For wealthy or international families, this has frequently involved considering the issue of nuptial agreements. Binding or not? Despite what some reports would have you believe, no nuptial agreement is automatically binding upon the couple. That said, following the well reported case of Radmacher, the English courts are increasingly inclined to uphold a pre or post-nuptial agreement wherever possible. After Radmacher, the enforceability of a pre-nup was again raised before the English courts in a case involving a French couple and a ‘separation de biens’ entered into after four years of marriage. The decision in that case reinforced the warning that while pre or post-nups can cut through what might be years of expensive legal dispute, they are not always the easy solution they might at first appear to be. Agreements entered into in other countries and considered by English courts can be particularly problematic. Maintenance issues European marital property regimes, and therefore European marital property agreements, do not usually cover issues such as spousal or child maintenance in the event of divorce. The English court will demand that these are dealt with.
Consequently, even if the agreement covers the division of the family’s assets and is itself upheld, there could well be further significant on-going or lump sum payments in respect of maintenance for the spouse and/or any children. Arguing over what those payments should be can be an expensive and time consuming exercise. People who might intend to bring divorce proceedings in England, or could potentially be on the end of divorce proceedings here, therefore have much to consider. Aside from the usual checks of any nuptial agreement they might intend to rely on, they should ensure that it is sufficiently clear on the kinds of issues raised here. This article is published with permission from Pinsent Masons and first appeared in its PrivateWealth bulletin in Spring 2012.
Market update Switzerland –––––––––––––––––––––––––
The Swiss National Council (the lower house of parliament), has approved in principle the tax agreements with the UK, Germany, and with Austria, although it should be noted that it has rejected the underlying framework law. MPs approved the agreement with the UK by a margin of 109 to 81. The agreements are due to enter into force following ratification by the relevant treaty partner states on 1 January 2013. Banking secrecy is fundamental to Switzerland's £1.5 trillion offshore wealth management industry, and so far an automatic exchange of information agreement has been resisted in favour of levying a withholding tax to preserve secrecy for account holders. The outcome of the vote follows the earlier go-ahead given to the bilateral tax deals by the Swiss Council of States. An optional referendum on the agreements is provisionally scheduled to take place on 25 November, and so whilst it is still not an absolute certainty that the agreements will come into force on 1 January, UK passport holders with Swiss accounts should be taking advice on that basis. Due to opposition from both the Social Democrats (SP) and the Swiss People’s Party (SVP), the National Council surprisingly rejected the framework international withholding tax agreement designed to implement the tax accords in Switzerland. The bill was narrowly rejected by 89 votes to 85 with five abstentions, and will now return to the Swiss Council of States for re-examination. Swiss Finance Minister, Eveline WidmerSchlumpf, once again underscored that the previous model of accepting untaxed money is no model for the future. 'No longer can bank secrecy be misused as a way for cheating on taxes', she said. Based on a withholding tax model, the inter-governmental treaties are designed to legalise the undeclared, untaxed assets held by wealthy foreign residents in Swiss banks, applicable to both old money and to future investments.
Unless an affected person authorises voluntary disclosure of their Swiss assets, the banks will deduct an amount annually from income, assets, and capital gains. The rate is based on the top end of UK tax rates, and the Swiss banks are already well advanced in their internal preparations to identify relevant accounts and procure the tax accordingly.
Grant Osborn-Smith Senior Manager T: +41 (0)43 500 3875 E: grantosbornsmith@ lssgmbh.ch
Dubai ––––––––––––––––––––––––––
We recently co-sponsored the 2012 STEP Arabia Conference held in Dubai. The event was very well attended by professionals from the Middle East and Europe and clearly demonstrated the increased interest in private wealth planning for clients in the region and beyond. Jersey Finance was the event’s other sponsor, highlighting the already strong links between Jersey and the United Arab Emirates. Tim Cartwright, a director at Hawksford, provided an analysis of issues around nominee agreements and how they could be damaging to a family’s wealth. Tim highlighted where nominee agreements can feature in a number of areas in the management of a person’s, or indeed a company’s, financial affairs. This talk focused on such agreements provided by asset managers or stockbrokers where an individual enters into a personal contract to manage his assets. In many instances, it can be advantageous for clients to hold their assets in some form of vehicle, be it a trust, company or other asset planning structure. Further, the assets in such a structure should be held in a vehicle established in a tax neutral location such as Jersey. So for example, if the client chose to use a Jersey company through which to hold a variety of assets, they would own the shares in a Jersey company. That company could then be
used as the vehicle to own a variety of assets around the world. As the client would hold Jersey situs assets, being shares in the Jersey company, we would always recommend that he executes a Jersey will, which on death would be probated in Jersey allowing the client’s personal representatives fairly swift access to the assets of the company. So for example, if the client resides in one of the many countries in the Middle East that does not impose direct taxation, the client’s estate at death would not suffer any form of tax wherever the assets are held by the Jersey company. The talk highlighted that where assets are still retained by the individual and then managed under a nominee agreement, a number of problems can arise on death, not least the possibility of substantial tax obligations in the jurisdictions where the underlying assets within a nominee agreement are held. In both the UK and the USA, the legislation provides for the revenue authorities in each location to call for tax returns and, if appropriate, tax payment from a number of people involved in the relationship. In summary, as in all matters relating to an individual’s financial affairs, care needs to be taken when a client considers entering into a nominee agreement for the management of his bankable assets. Our view continues to be that clients should always look at the advantages of incorporating some form of special purpose vehicle, which can then become the client of the asset manager. By following this course, a client not only protects themself and their family from the problems associated with holding assets in their own name, but also has greater flexibility for the administration of their financial affairs.
Lynda O'Mahoney Business Development Manager - Middle East T: +971 50 8595564 E: lynda.omahoney@ hawksford.ae
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| Summer 2012
An interview with Duncan Revie, CEO Soccerex Football has come a long way since Duncan Revie had his first taste of the beautiful game, almost 50 years ago. Duncan, CEO of global football convention organiser Soccerex, recalls being taken to the Leeds ground at Elland Road in 1963 by his father, legendary Leeds United and England manager Don Revie. It was not an auspicious introduction: “It was a dump, a tip,” Duncan recalls. “My dad said ‘this is all going to change’ and he mentioned executive boxes, suites and corporate functions, about the ground not just being used from 10-3 on a Saturday but used throughout the week.”His late father was right – it has all changed; today, football is more than just a game of eleven a side on a Saturday afternoon. It is a 24/7 global business (worth over 12 billion euros in Europe alone), its top players commanding multi-million pound salaries and the likes of Beckham, Messi and Ronaldo revered on the same footing as Hollywood film stars. Football is big business. According to recent studies, investments for the 2014 FIFA World Cup should inject over £52 billion into the Brazilian economy. Ahead of the tournament in two years’ time, Rio de Janeiro hosts the next Soccerex Global Convention in November. In its 17year life span, the organisation has hosted 27 events over five continents and become the sport’s biggest b2b gathering point. As well as Rio, Soccerex will host conventions, forums and seminars in Durban, Lagos and Manchester over the next 18 months. While Duncan Revie admits it’s hard to predict where football will be in the next 15-20 years, the Soccerex boss can still foresee many changes essential for the sport’s development and survival: “The future is that the player wages will have to come under control, but alas we live in a world of supply and demand,” he says. “Football is religious – it has nothing to do with common sense or how business is run. It’s engraved into our English culture, our
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love for clubs and the traditions of football. It remains an outlay for people in their daily lives – and football is becoming more family friendly." “The quality of the product will continue and I believe that in the future we will have a European super league and the 92 [league] clubs in England will be brought down to a more manageable number - although this [still] strives to be the foundation of what makes our football so great.” Duncan adds: “We have the most successful league, but we don’t dominate in the way we like to think we do, despite the whole world trying to copy the UK model. There will be a lot more inward investment into the UK clubs – it’s an incredible world market and people are getting excited by the commercial and future prospects.” The contentious subject of goal line technology will be finally resolved in the near future, says Revie - the first introduction of technology to the game and the start of intervention. Another big growth area in football will be training, says the Soccerex CEO, who adds that not all ‘new’ training methods will be as revolutionary as they may claim: “In 1964 dad brought in a ballet dancer to help improve balance and flexibility,” says Revie. “I think this will continue in the future. The game is quicker because the pitches are better, and because the ability to tackle from behind has been virtually eliminated, the players probably need to be fitter now than they were." “When Ronaldo gets a ball on a wing, you can’t touch him; it would be different if he was on a horrid muddy pitch. They shouldn’t take tackling out of it – it’s becoming less physical and I hope that this will stop.” Soccerex, which Revie established with his wife Rita in 1996, is part conference, part networking event, exhibition and football festival, all in one. The level of business done through last year’s Soccerex Global Convention is estimated to be in excess of £250 million, with 73% of delegates who attended expecting to generate business from it.
“The future is that the player wages will have to come under control, but alas we live in a world of supply and demand.”
Like the game itself, it has a bright future ahead: “For the next 20 years we’ll travel the world,” says its CEO. “We’ve already signed for Manchester 2014-2017 and are in discussion with Qatar for 2018-2021, so the route map is clear. What we’ve done is create a brand which attracts the football world." “What is important is that FIFA, for all the criticism, has a particular brief, to worry about the world game, hence their decisions to go to South Africa, Russia and Qatar and spread football worldwide” Revie adds. “Twenty years ago you wouldn’t believe that some teams, such as Trinidad and Tobago or the Ivory Coast would not only qualify [for the World Cup] but be competitive. Watch out for India and China!” www.soccerex.com/global Case studies: Through Hawksford Media & Sports and our other Hawksford Group business lines, we already provide clients with a range of specialist solutions. We work with a top four English Premier League club and its players, and have set up an offshore company for a top flight footballer who was domiciled in Europe. The individual in turn owns his image rights on all contracts outside of the UK. The player also retained exclusive territory in Europe for his image rights, which he assigned to the Jersey company. All revenue earnings from image rights in the UK are paid to a UK company wholly owned by the player, which is charged to corporation tax. The player receives funds from the company through a silent partnership. Hawksford also acted as trustees for an African domiciled footballer. His image rights were transferred to a company owned by the trust (which was also administered by Hawksford) and the company contracted with this club and the player’s other sponsors in relation to the use of his image. For more information about what solutions we can provide visit www.hawksford.com/mediaandsports
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Fiduciary Family Office Wills & Probate Succession Planning Employee Solutions Funds Advisory Media & Sports L-S&S GmbH
part of the Hawksford Group
15 Esplanade, St Helier Jersey, JE1 1RB Channel Islands T +44 (0)1534 740 000 F +44 (0)1534 740 074 www.hawksford.com
Hawksford Group Jersey | British Virgin Islands New Zealand | Singapore Switzerland | United Arab Emirates Hawksford Group (and Hawksford International) are the Registered Business Names of Hawksford Trust Company Jersey Limited which is regulated by the Jersey Financial Services Commission.
For feedback and suggestions, or if you would like to contribute to future editions of Hawk-i, please contact: Rebecca Stannard Marketing & Communications Manager T: +44 (0) 1534 740182 E: rebecca.stannard@hawksford.com