Bradley Wiggins opens up about his financial struggles, detailing how poor oversight during his racing career led to bankruptcy and legal battles.
Bradley Wiggins has recently opened up about the financial difficulties that led to his declaration of bankruptcy, shedding light on issues that began during his racing career. In a conversation on Lance Armstrong’s WEDŪ podcast, The Forward, Wiggins admitted that he assumed money would always be available, a mindset that contributed to his current financial woes.
Oversight During His Racing Career
Reflecting on his racing days, Wiggins expressed regret over not paying close attention to his financial affairs. “One of the things I regret is I never paid attention to my financial affairs when I was racing,” he said.
Wiggins highlighted how athletes often make substantial amounts of money, but without proper oversight, they can be taken advantage of.
Wiggins acknowledged that his lack of financial awareness during his career played a significant role in his current financial situation.
“I should have paid more attention to it,” he admitted, recognizing the long-term impact of these oversights. He emphasized that the situation did not develop overnight but had been festering for years.
Complex Company Structures and Debt
Wiggins explained that his financial troubles were exacerbated by the way his business structures were set up, making him liable for losses beyond his knowledge.
| Company Structure | Details |
|---|---|
| Wiggins’ Companies | Wiggins had three companies: an image rights company, a company handling endorsements through XIX Entertainment, and New Cycling Limited (Team Wiggins). |
| Purpose of Team Wiggins | The team was created to support the national track program, particularly for the 2016 Rio Olympics. It was not supposed to make a profit or loss but only to pay the riders and manage the budget. |
| Financial Impact | Despite the plan, Team Wiggins overspent its budget of £650,000, ending up spending £1 million in the first year. This forced Wiggins to use his own money to cover the shortfall. |
| Debt Accumulation | The top company ended up with a debt of nearly £1.5 million, which was transferred to Wiggins as a director’s loan, despite not being aware of it at the time. |
Wiggins elaborated that the debts were accrued in a manner that saw the top company absorb any financial hits. He pointed out that this was a deliberate setup, but it ultimately left him in a precarious position.
Legal Issues with Team Sky and HMRC
Wiggins also touched on legal challenges he faced regarding his employment status with Team Sky. Initially categorized as self-employed with an image rights company, Wiggins was later reclassified as an employee following a legal battle with HMRC.
| Legal Battle with HMRC | Details |
|---|---|
| Self-Employment vs. Employment | Wiggins, like many other athletes, was initially classified as self-employed. However, a legal case with HMRC challenged this status. |
| Outcome | Wiggins was eventually deemed an employee, forcing him to pay back taxes and National Insurance for the previous five years. |
| Impact | This ruling added to Wiggins’ financial burdens, as he had to cover substantial back payments. |
Wiggins revealed that Team Sky was aware of the potential outcome from the beginning, leaving him with a significant financial liability.
Media Intrusion and Public Perception
Wiggins addressed the media’s role in sensationalizing his financial struggles. Reports have circulated about his alleged destitution, with some even claiming he was “couch-surfing.” Wiggins dismissed these claims, criticizing the tabloid intrusion into his life.
| Media Intrusion | Details |
|---|---|
| Tabloid Harassment | Wiggins described the intense scrutiny and harassment from the media, particularly their focus on his financial downfall. |
| Inside Information | He suggested that journalists had inside knowledge of his financial affairs, potentially leaked before the information was made public. |
Despite the negative press, Wiggins remains optimistic about resolving his financial situation. “It will be alright,” he stated, marking the first time he has publicly commented on the matter since it came to light.
Conclusion
Bradley Wiggins’ candid discussion on his financial troubles offers a rare glimpse into the challenges athletes can face when financial management is overlooked. As Wiggins continues to navigate his financial recovery, he remains hopeful that the situation will eventually be resolved.
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