Liverpool legend makes heartbreaking admission over bankruptcy after huge debts

Former Liverpool and England star John Barnes has discussed his bankruptcy filing in September 2025, explaining how bad investments led to him paying off huge debts before going bankrupt again

John Barnes looks on as a pundit(Image: Getty Images)

John Barnes has opened up about the circumstances that resulted in him declaring bankruptcy in September 2025. The ex-Liverpool and England winger faced a petition from HM Revenue and Customs after accumulating debts exceeding $2 million (£1.5 million).

Barnes, 62, was previously made bankrupt in 2009, though he characterised that episode as a "tax oversight." He has now provided comprehensive details about his most recent financial difficulties, which he attributes to poor management of his finances throughout his playing days.

"So I got caught with a lot of coffee [investments] in Brazil," the-ex Liverpool star revealed on the latest instalment of The Overlap. "A lot of investments all over the world."

When Gary Neville enquired whether the Anfield legend had any advisers at that time, Barnes replied: "No. My agent was just an agent who did football. These are other people coming in to say, 'Well, what about this? What about this scheme?'

"And then, of course, villas in Florida [referring to the scheme that made many footballers lose millions with Kingsbridge investments], similar to that. But I didn't look to go down the route that they then did [in attempting to get their money back].

"But I lost a lot of money, and by the time I stopped playing football and this big tax bill came in, I was playing catch-up for many, many years until I, from 2017 up until last year, had finally paid off about £2m ($2.7M).

"But then the tax man wanted last year's money, after cashing in everything I had to pay them! And what I really should have done is gone bankrupt from 2017 Honestly I would have had £2m I could have done whatever I wanted with. But what I didn't want to do is to be seen not paying it.

"So of course people think, 'He's not paying tax, he's not paying tax.' But from 2017, I've been paying everything I've had, cashing in everything, whatever house I had. So all I've got is my house. Everything I physically can."

John Barnes and Peter Beardsley of Liverpool (Image: Getty Images)

The Kingston-born legend went on to explain he felt he was finally making progress when the tax authorities became "overly aggressive" in pursuing what he owed. Consequently, he was forced into bankruptcy once more.

"Because I see people go bankrupt and still have houses and cars, and stuff like that. And I don't have that," he added. "I've still got my house and my car. But I haven't got any investments anywhere, because I've cashed it all in. Because I really want people to know...because I see how hard it is for people all over.

"You know, people can't pay their heating bill and stuff. And here am I having money and now I'm not paying the tax. So the only reason I did it was because of that. But that's life."

Arsenal legend Ian Wright probed further regarding the guidance Barnes may or may not have been given concerning his financial matters. Barnes then outlined how circumstances have evolved for footballers since his playing days.

"Don't forget, when we were playing, they were like 'mates who knew somebody' type of thing," he added. "It wasn't really that structured...and the club themselves put you in touch with people who could look after you.

"Whereas back then, I remember even when I first got an agent, they were like, 'An agent? You don't need an agent.' The way clubs were...I won't say they used to abuse players, but I remember once they said, 'Look, the contract's there for you to go sign. Just go sign it.'".

Fellow pundit Jill Scott offered her perspective that there are probably still players today receiving poor guidance from those in their inner circle. Roy Keane chimed in by suggesting "a good accountant" as the most crucial requirement.

Barnes remains active as a pundit and is a sought-after figure on the speaking circuit. The two-time FA Cup and league title winner has enjoyed brief managerial spells with Celtic, Jamaica and most recently Tranmere Rovers, though he hasn't occupied a coaching role since 2009.