Osborne calls time on football testimonials and sporting benefit matches

Testimonial games for long-serving footballers, cricketers and rugby players could be “killed off” by Treasury plans to tax the proceeds.

For decades fans have enjoyed glamour ties against top opposition organised to thank loyal players.

But now Chancellor George Osborne could end all that by making the games worth a fraction of what they were before.

Players and fans are appalled.

Scott Thomson enjoyed a star studded and money spinning tie against Sir Alex Ferguson’s Manchester United in 2007 when he’d clocked up 10 years as a Dunfermline player.

He said: “It was a chance for the fans to pay respect to me but also a chance for me to pay respect to them.

“For lower league players a testimonial could be the same as four of five years’ wages.

“Mine allowed me to pay off a bit of my mortgage and set up my media production business.

“But it’s not just about the money. Sir Alex said some nice things about me in the testimonial programme and that will stay with me forever.”

Former SFA chief Gordon Smith added: “Fans will be angry if they think their ticket money is going to the player but it’s actually going to George Osborne.

“With fewer and fewer players staying at clubs long enough to warrant a testimonial this measure is hardly going to fill the Exchequer with money.

“It’s not going to bring in a sizeable amount of money so the Chancellor would be as well leaving it alone rather than annoying fans for the sake of it.”

Rangers and Everton legend Duncan Ferguson, now on the Goodison side’s training staff, is set for a testimonial next month at which he may pull on the jersey again.

Another footballer recently awarded a testimonial was Crystal Palace goalkeeper Julian Speroni, who joined the club from Dundee 11 years ago.

In some cases players have earned in excess of £1 million from the games.

They include former Sunderland striker Niall Quinn who donated the proceeds from his testimonial in 2002 to children’s charities and former Liverpool defender Jamie Carragher, who also gave away the profits.

However documents sneaked out on Budget Day by the Treasury warn that changes to the tax regime could “effectively kill off testimonials and benefit matches” by ensuring as much as 60p in every £1 donated ends up in the Chancellor’s coffers.

The proceeds of testimonial matches have been given to players tax free since a landmark court case in 1927 brought by a Kent cricketer. That judgement determined that the money was effectively a gift from the supporters to the player.

However, over the years the tax code has become increasingly complex leading to confusion about whether or not the proceeds raised from a game are actually income earned as a result of a player’s employment.

The Treasury is determined to tax the income from testimonials but they launched a consultation last week on possibly allowing players to keep some of the cash tax free.

Andrew Jenkin, head of fans body Supporters Direct Scotland, said: “Fans won’t be best pleased with this.

“Testimonials are a nice chance to celebrate a player’s career.

“If a player has stayed with a club long enough to get a testimonial their loyalty should be celebrated and it’s nice that they are able to benefit from it or, if they don’t need the money a lot, give it to charity.

“If the game is against an attractive opposition it’s extra special for the supporters.”

A Treasury spokesman said HMRC considers that its tax treatment of income from testimonials has “departed from the strict

statutory position”.

“As a result, the government is considering ways to put the tax and National Insurance Contributions treatment of such income on a firm legislative basis.”

My View Gordon Taylor Chief executive of the PFA, the players’ union

This is a step too far from the taxman.

We’re quite concerned about these proposals from HMRC.

Testimonials are special and in this age of free movement they are becoming rare, particularly at lower league clubs.

But when they do happen they give fans a chance to show their appreciation.

Big names like Niall Quinn, Steven Gerrard and Jamie Carragher have donated their proceeds to charity.

Football and footballers already pay a fortune to the Exchequer.

Players have a very short career, eight years on average.

Of course the Government must be careful in a time of austerity but I find it a little bit sad that they should target testimonials.