Peter Schmeichel admits involvement in tax relief scheme that bankrupt players

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• Peter Schmeichel

The ex-Manchester United and Manchester City star has opened up about a big financial misjudgement

Peter Schmeichel has expressed regret over his involvement in a tax relief scheme that he spent 15 years rectifying.

The legendary goalkeeper, who won numerous trophies with Manchester United including the Treble in 1999, later had stints with Sporting CP and Aston Villa before finishing his career with Manchester City. Now 62, he is a frequent face on the punditry circuit and keeps a close eye on his son, Kasper, who plays for Celtic.

Raised by his musician father and nurse mother in Denmark, Schmeichel has generally been careful with his financial dealings. However, he laments one specific investment that took him years to disentangle from, while other players who also participated in the scheme faced financial disaster.

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When asked if he had learned any hard lessons about money throughout his life, he told the Telegraph: "One year, I was convinced to enter a scheme where high-net-worth individuals invest in films to claim tax relief.

"But I realised quite quickly how dangerous that was, and I stopped it. It still took me 15 years to unravel all of it. I've seen other players go bankrupt because of it."

Schmeichel has made far more wise financial decisions than poor ones. On his best investment, he said: "My best decisions have been property-related.

"When I retired and left England, I sold my home and I made a nice little profit. Likewise, a house in Portugal and a couple of apartments in Denmark I've made profits on.

"Since I'm not that interested in money, I've never ever put much effort into how I can make more of it. "

Regarding Kasper, Schmeichel views himself more as a "sounding board" rather than an adviser. Nevertheless, he did impart some valuable financial wisdom to his son.

He said: "When Kasper started, my main advice was simple: live below your means and surround yourself with people you trust. There are always people who want access to young footballers.

"I told him to think long-term from day one. The first contract feels enormous, but it won't last forever. If you make sensible decisions early, you give yourself options later. If there are any red flags I'll point them out to him, but more often than not he's very sensible."