Middlesex is at the center of a potential tax scandal over failure to pay value added tax (VAT) on cricket balls amid new explosive statements about their financial crisis and a toxic dispute with their former CEO.
A Telegraph Sport investigation revealed the full extent of the alleged “mismanagement” which has led to authorities in England and England sanctioning the county. ; The Welsh Cricket Board (ECB), followed by a separate bitter public row involving Richard Goatley and his family, which threatens to end in court.
This includes details of:
- < li>Possible tax scandal relating to the club's purchase and sale of cricket balls.
- Failure to report for recreational play, which constitutes a criminal offence.
- Fines allegedly imposed by HM Revenue & Customs regularly delays submissions and temporarily freezes the club's bank account for similar violations.
- Alleged «unauthorized payments» made by Goatley, who denies misappropriating funds, totaling more than £70,000.
- Claims, bailiffs hit club head office over thousands of pounds in unpaid parking fines incurred by Goatley.
- Complaints and resignations from board members over the management of the club, including the appointment of the current chairman and chief executive
Middlesex first descended into chaos almost three years ago when a payment error was discovered pensions, which ultimately cost the county six figures and compounded losses caused by the coronavirus crisis.
Shortly after, Goatley suffered a suspected stroke during an online meeting and soon left the club, citing for feeling unwell.
Middlesex claim they subsequently discovered «unauthorized payments» by Goatley into his bank account, as well as an account belonging to his wife, totaling more than £70,000, and have since continued to investigate the matter.
&# 39; We feel like we're in hell'
Goatley denies misappropriating funds and his family has complained to the ECB about the county's approach, which his lawyer says will bankrupt them and make them homeless. There is no suggestion that his wife was involved or had any knowledge of any wrongdoing. Middlesex has denied any wrongdoing in the pursuit of the money, which has been the subject of a bitter public dispute involving Goatley's wife Lucy Ayliffe and her sister Daisy.
Both women have posted numerous posts about the saga on X (formerly Twitter), with Lucy writing last week: «We feel like we're trapped in hell.» Daisy, a BAFTA-nominated documentary filmmaker and former Guardian journalist, then wrote on Monday that her sister was «taken from her home and her children in an ambulance».
The row threatens to end in court. who will be able to see the announcement of further accusations and revelations that may be revealed for the first time.
These include claims Goatley incurred thousands of pounds in work-related parking fines which his staff were forced to pay with their personal bank cards (later reimbursed by the club) after bailiffs raided Middlesex's head office .
Also include allegations that HMRC fined the county for persistently late filings, and their Barclays bank account was temporarily frozen due to similar irregularities.
And they include the club's former interim finance director David Thompson, who made the announcement. about a «possible multi-year tax scandal» related to non-payment of VAT on the purchase and sale of cricket balls.
Failure to provide MCB reports has become part of the ECB sanctions imposed on Middlesex. Photo: Getty Images/Alex Davidson
The district acknowledged that no problems of this nature arose after Thompson was brought on board following Goatley's departure, but said that current executive director Andrew Cornish prevented any wrongdoing in this case and that no evidence of any prior wrongdoing was found Thompson told Telegraph Sport that the ECB had not contacted him as part of the Middlesex investigation, which was launched by another whistleblower who raised the alarm about alleged misuse of central funds.
It could be revealed by one One of the main subjects of this investigation was the failure of the recreational arm of the Middlesex Cricket Board (MCB) to report for more than three years — a criminal offense which resulted in the company being dissolved in March last year following a forced strike. switched off.
When accounts were eventually filed four months later and the strike was called off, figures showed that an apparent black hole worth around £1 million had opened up in MCB's finances between 2018 and 2020.< /p>
MCB's accounts formed part of ECB sanctions imposed on Middlesex, but former and current club officials told Telegraph Sport that there was no real black hole in the company's finances and that the figures implying there was one were the result of «previous poor management». .
The most recent MCB reports also show no such black hole, while ECB sources confirmed that misuse of funds was not among the findings against the club.
Gautley did not respond to detailed questions on any of the above issues, but former colleagues and board members told Telegraph Sport it would be wrong to hold him solely responsible for everything that allegedly happened during his six years in charge.
The majority pointed to management deficiencies that meant the club operated without a chief financial officer throughout his tenure, exacerbating potentially inadequate scrutiny of his own performance.
Complaints about poor management also did not end with Goatley's departure and it can be noted that last year saw the departure of two board members, raising alarm over the appointment of Cornish as chief executive and Richard Sykes as chairman.
Telegraph Sport has seen the email , sent last summer by Edward Lord, who stepped down as an independent director in April, indicating his opposition to Cornish being promoted from interim to permanent CEO without giving others the opportunity to apply for the position. /p>
Lord and one other director were outnumbered by their fellow board members, who argued the club needed an urgent appointment amid fears the club was facing bankruptcy.
Then, in December, Sasha White quit in protest after Sykes, then the senior independent director, applied for the chairmanship despite being tasked with leading the search for Mike O'Farrell's successor.
Former Deputy Chairman Eddie Villiers also withdrew his candidacy after Sykes had previously told him and White he had no plans to stand.
The row led to the whole process being scrapped and a new one being launched in which Sykes, who was adamant that all the rules of the appointment process were correctly followed, was eventually appointed chairman.
'My family and members of Middlesex deserve closure'
Former directors and staff have also raised concerns with Telegraph Sport about other appointments following the departure Goatley, who they said raised questions about the club's commitment to good governance.
Richard Goatley denies misappropriation of funds
In a statement, Goatley said: “I have been forced to leave Middlesex, the job and club I loved, due to serious ill health. I fully cooperated in the transfer of property and answered all questions asked of me, which I agreed to as part of the settlement agreement. Middlesex broke that deal and my family has suffered for it ever since. I have always been open to supporting any fair and independent investigation into matters that I can assist with during my tenure, but this process at the club has dragged on for years and has not been subject to due process. I believe my family and members of Middlesex deserve closure.
“I completely deny any allegations of embezzlement. Repeated legal threats and demands for unproven amounts of money that I owe and know nothing about have been excruciating for nearly three years for me, my wife, and our young children. Our repeated calls for a settlement remain unanswered. Two years ago, my wife was informed in writing that an agreement had been reached in the case. Several months later, more legal threats were made. The club made public statements describing legal proceedings, but no cases were brought. We were found guilty and we could not move on.
“I am grateful to the members of Middlesex who have raised concerns about how I and my family have been treated. When I was at Middlesex we were rightly proud of our values and worked hard to uphold them both on and off the pitch. I started my club through Covid with zero debt and left the club in poor health, signing a global agreement with my cricket hero and friend Sachin Tendulkar. I'm sad to see what has become of Middlesex since I left.»
His lawyer Emily Cole, of Cole Han Solicitors, added: “It is deeply disappointing that our repeated calls for solutions to these long-standing problems continue to fall on deaf ears. We urge that the threats cease and efforts be made to reach a resolution that does not involve our client facing imminent bankruptcy and repossession of the family home. We hope that they will now work intelligently with the ECB and with us to reach a solution once and for all.”
“The club have spent a significant amount of time trying to resolve this matter amicably.”
Middlesex said in response: “In line with the values of the club and the spirit of the game, Middlesex Cricket has exercised considerable restraint in recent months. seeking to avoid public comment on matters relating to the ongoing dispute with former CEO, Mr Richard Goatley.
“Unfortunately, due to the orchestrated campaign to damage the club in the media, we have been left with no choice but to comment to correct a number of untruths and misunderstandings and protect the reputation of our club and those associated with us. We have endeavored to ensure that the facts reported reflect the truth of this ongoing dispute.
“Middlesex Cricket can confirm that, contrary to misleading statements made recently by solicitors representing Mr Goatley, an interim measures letter was sent on 12 November 2021 outlining the club's claims against him. The Club has sought to resolve the dispute without resorting to litigation, but if a settlement cannot be reached, the Club has a duty to its members to recover amounts due through the courts. Unfortunately, if the case goes to court, it will inevitably attract the very publicity that the club tried its best to avoid.
“Despite the very serious nature of the allegations relating to unauthorized payments to Mr Goatley, the club has spent considerable time attempting to resolve this matter amicably with Mr Goatley and his lawyers. Offers were made and rejected. “Official statements made to the Telegraph by the club's former chief executive on this matter are disgracefully misleading. Mr Goatley is fully aware of the seriousness of the circumstances which led to this dispute and of the correspondence which has since taken place between the parties. Mr Goatley has been offered the opportunity to provide a full explanation regarding the payments to his personal bank accounts, but has so far failed to do so.
“While it is not our intention to analyze every statement made by the former CEO in his official statement to The Telegraph, that he left the club in “poor health” is symptomatic of the many gross inaccuracies that exist in his statement. The club's financial accounts, which are publicly available, show the club made losses of more than £950,000 in 2021, the final year of Mr Goatley's six-year tenure as chief executive.
“We are working hard to ensure that the difficulties the club experienced following Mr Goatley's tenure as chief executive are addressed and not repeated. This required hiring an experienced CFO to lead a dedicated finance team, as well as improving historical processes and procedures to ensure sound and appropriate governance going forward.
“The club is not interested in bringing this dispute into the public domain. However, after repeated provocations and outright lies published by those associated with Mr Goatley, we are left with no choice but to defend our reputation and the reputation of those associated with us.
“Although we are confident While most people will see this for what it is, it is disappointing that other parties involved in this dispute have attempted to put personal interests above fairness and due process.
“We are grateful for the support that we have gained as a club, recovering and improving from the mistakes of the past. It goes without saying that we are working very hard and hope that this issue can be resolved as quickly as possible so that we can focus all our energies on the future rather than the past.»
Cornwall also stated after that as the ECB sanctioned the club in September: “Middlesex is determined to ensure that the financial management and governance of the club in the future is of the highest standards and we are committed to working closely with the ECB to ensure that this is the case.”
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