A few months ago, in the Saudi transfer recap, I had some harsh words for Jordan Henderson. I said “turns out, loyalty and values can be bought” and essentially said Henderson sold his soul for a big Saudi payday (3 years, £36.4m per year). Well, Henderson sold his soul, and didn’t even get the big payday.
What Happened?
Henderson, like many players who moved to Saudi for a big payday, had difficulty adjusting to life on the Arabian Peninsula. After underwhelming performances and appearing to be unhappy with living in the Kingdom, Henderson and Al Ettifaq agreed to terminate his contract so he could move back to Europe on a free transfer. Henderson, a Liverpool legend who could have signed a new contract with Liverpool before leaving for Al Ettifaq last summer, moved to Ajax in Amsterdam.
How Much Money Did Henderson Make?
At £36.4m per year, most people could retire and live a lavish life after a 6 month stay. Given the yearly salary, most people would think Henderson made around £15-20 million. Henderson, the man who sold his soul for a big payday, reportedly made £0 playing in Saudi Arabia.
If Henderson Had Such a Large Contract, Why Didn’t He Make a Cent?
The short answer is taxes. I am a lawyer, but I am certainly not a British tax lawyer or British CPA, so there may be some intricacies in this that I have neglected and this should in no way constitute legal advice.
Henderson chose to defer his original wages with Al Ettifaq. The reason Henderson deferred his wages is for resident tax reasons. In the UK, an individual is considered a resident for tax purposes if the individual spends more than 90 days in the country. Henderson’s advisors reportedly told him that he and his family would be considered tax residents of the UK if they spent more than 21 days in the UK, based on a pro rata formula. In order to allow his wife and children to visit relatives in the UK without any time restrictions, Henderson deferred his wages until 2024 to reset the tax residency time restrictions.
Henderson hoped, as a Saudi tax resident, he could pay the Saudi income tax rate on the wages (0%) rather than the British income tax rate (~50%). However, because of his greed, Henderson ended up with £0 from his time in Saudi Arabia.
Conclusion
It’s been a tough 6 months for Jordan. Henderson moved his family, ruined his reputation with Scousers, sold his soul shilling for a dictatorial regime, and made £0 while doing it. Personally, I have no sympathy for him. He got what he deserved.
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