HMRC raided several places in the North and South East of England last week; and seized business records, financial records, computers and mobiles phones, as part of an investigation into suspected Income Tax and National Insurance fraud.

A free transfer involving Demba Ba in 2011 is said to have sparked the HMRC investigation into English football clubs Newcastle United and West Ham United. Officials raided the stadiums of both teams last week.

HMRC raided several places in the North and Southeast of England last week; and seized business records, financial records, computers and mobiles phones, as part of an investigation into suspected income tax and National Insurance fraud.

Now, UK newspaper The Sun has stated a deal, which saw Demba Ba leave West Ham to Newcastle, in 2011, sparked an investigation last year into other deals made by the clubs.

Ba’s transfer to Newcastle was a free transfer, but the Sun claimed, the player earned nearly £1 million ($1.29 million) in image rights as part of a total £2 million paid out by Newcastle. 

The newspaper also reported the £2 million was allegedly paid by the Northeast club into the Football Association’s clearing system before it was moved by a law firm into five separate accounts, including one based in Panama.

A source reportedly told The Sun, “they then started looking at other player transfers, ownership, payments to players and agents and crucially image rights". “Image rights had been widely used to avoid paying national insurance and income tax on player salaries. The money was paid into offshore accounts. Newcastle and West Ham were repeatedly asked to cooperate but officers felt they were far from helpful. There is a large focus on the movements of players between France and England from 2011 onwards. French authorities are assisting.”

There is no suggestion that the money was not declared or taxed. Chelsea Football Club also admitted it was helping the HMRC with the investigation, but was not raided. Ba left Newcastle for Chelsea in 2013.

The HMRC investigation into the clubs is still ongoing, and is not likely to be finished for a few months as they look into transfers involving both English clubs and French teams.

Here is a list of the most expensive transfers made between Newcastle/West Ham and French football teams:

Dimitri Payet – West Ham to Marseille in 2017 - £25 million;
Yohan Cabaye – Newcastle to PSG in 2014 - £19 million;
Florian Thauvin – Marseille to Newcastle in 2015  - £15 million;
Remy Cabella – Montpellier to Newcastle in 2014 - £12 million; and
Dimitri Payet – Marseille to West Ham in 2015 - £10.9 million.