Harry Redknapp Trial: Tottenham Manager and Milan Mandaric Not Guilty of Tax Evasion

Tottenham manager Harry Redknapp and the former Portsmouth chairman Milan Mandaric have both been found not guilty of tax evasion.

After more than five hours of deliberation at Southwark Crown Court, the jury delivered their verdicts on Wednesday at 11:35 GMT.

Following the announcement of their not guilty verdicts of cheating public revenues during their time together at Portsmouth Football Club, Redknapp and Mandaric embraced in celebration.

Emerging from court, Redknapp was greeted by cheers from waiting football fans. The patently emotional Tottenham manager fought back tears as he spoke to the waiting media.

Thanking his legal team, Tottenham chairman Daniel Levy and his family, as well as the reception he received at White Hart Lane during the match against Wigan last month, Redknapp told reporters outside court that he had been through a five-year-long "nightmare", claiming that the case "should never have come to court".

On the steps of Southwark Crown Court, Redknapp told the BBC: "Thank you for the support from Daniel Levy [Tottenham chairman]. If he ever felt there was a problem when he gave me this job, this was going on over three years ago, he would never have employed me.

"He knew this was never a case that should have ever come to court.

He continued: "I must thank the fans at Tottenham, especially the other night.

"The Wigan game was the most moving I've ever felt, to have the fans singing my name throughout the game while all this was going on. That will always be special to me and I will never forget that.

"Most importantly, [thanks] to my family, who have really been pulled through it these last five years that this has been hanging over us.

"I'm really just looking forward to getting home ...It really has been a nightmare, I've got to be honest. And this is a case that should never have come to court. It's unbelievable, really."

Redknapp said waiting for the verdict had been "horrendous ...but it was a unanimous decision, absolutely unanimous - there was no case to answer."

A statement from Tottenham Hotspur read: "Everyone at the club is delighted for Harry and his family. This has been hanging over him for over four years and the last two weeks have been particularly difficult. We are pleased to see this resolved and we all look forward to the rest of the season."

Prior to announcing the verdict, Judge Anthony Leonard QC warned against an "outbreak of noise" regardless of the outcome as a packed courtroom waited in anticipation. The court was so full many in attendance were seated on the floor. Some of the gallery applauded as the verdicts were read out.

Jurors rejected prosecution claims the money was a bonus for selling Peter Crouch and for beating Manchester United in the FA Cup.

The BBC also report that Mandaric and the former Portsmouth chief executive, Peter Storrie, were cleared of tax evasion charges at a separate trial last October, but this was not allowed to be reported during the current trial at Southwark Crown Court.

Storrie had been accused of dodging tax on a signing on-fee resulting from Amdy Faye's transfer from Auxerre to Portsmouth.

Storrie told the BBC: "We said from day one that it [the case] was farcical.

"I am delighted we've been proved completely innocent and I can get my reputation back."

Despite the double acquittal, a spokesman for the HMRC claimed they had no regrets about pursuing the case against Redknapp and Mandaric.

Chris Martins, from HM Revenue and Customs, said outside court: "We have no regrets about pursuing this case because it was vitally important that the facts were put before a jury for their consideration.

"We accept the verdict of the jury but I would like to remind those who are evading tax by using offshore tax havens that it always makes sense to come forward and talk to us before we come to talk to you."

On exiting the court, Redknapp reportedly winked at Tottenham assistant manager Kevin Bond amid a large media scrum. Redknapp's son Jamie, who had been present throughout the entire proceedings, embraced his father as they left court together.

In addition to Redknapp, Mandaric was also found not guillty of the two allegations.

Outside court, the Serbian-American business tycoon told The BBC: "I have to try and pinch myself and try to wake up from the horrible dream.

"I always believed in the truth and also believed in British justice system. I never doubted the truth would prevail.

"To suggest I would cheat the tax man is highly offensive. I am happy my name and my reputation has been upheld. These unfounded allegations should never have been brought to court."

Throughout the case, the jury, consisting of eight men and four women, heard both the Tottenham manager and his co-defendant Mandaric consistently deny the allegations of cheating public revenues during their mutual time at Portsmouth Football Club.

The first charge alleged that Mandaric paid £93,300 into a bank account opened by Redknapp in Monaco, in order to allegedly avoid paying income tax and national insurance between April 1, 2002 and November 28, 2007. The court heard that the offshore bank account was entitled "Rosie 47" - named after the Tottenham manager's pet dog and the year of his birth.

The second charge is for the same offence between May 1, 2004, and November 28 2007, when a sum of £97,000 was allegedly paid by Mandaric into the aforementioned Monaco bank account.

During the Judge's final summing up on Tuesday, the jury were warned to ignore any footballing allegiances, prejudices or preconceptions regarding the sport and its personalities, and suggested the game itself "has rather lost its way".

"Football is an emotive subject, stirring in an individual anything from deep passion to resentment," Judge Anthony Leonard told Southwark Crown Court, as quoted by The Times.

"Whatever you opinions about football, ignore them. This case is not about football but about allegations of tax fraud."

According to Sky News' Crime Correspondent Martin Brunt, who was tweeting live from Southwark Crown Court on Tuesday and summing up the Judge's final address to the Jury, he allegedly added: "Both men on trial are personalities and the case has attracted much media attention.

"The jury may have sympathy for the defendants because of the amount of time the case has taken to get to court, but verdicts must be reached on the evidence. There are no special rules you will attach to them as a result.

"It is possible to find Redknapp not guilty and Mandaric guilty if you are sure Redknapp believed tax had been paid [sic].

"Jurors must decide if payments into the Monaco account were Redknapp's employment or loan for investments between friends."

The Daily Telegraph also quoted the Judge, who allegedly added: "One of the first questions you'll need to ask yourselves is - what was the Monaco payment for?"

On Monday, the barrister representing Redknapp, John Kelsey-Fry QC, dismissed the case against the current Tottenham manager as "absurd" and in particular lambasted the prosecution's evidence obtained by the News of the World as "repugnant to all our basic instincts of fairness".

In the judge's final summing up, he told the jury that the News of the World "used a mix of inside info, gossip and kidology in the interview with Redknapp" and that "you may despise such behaviour", however, according to Martin Brunt the judge suggested this was not the main issue.

"It's not up to jurors to decide rights and wrongs of the News of the World tactics. There is a current inquiry to resolve such issues." The judge added referring to the on-going Leveson inquiry, according to Brunt.

The prosecution's case, dismissed as "despicable" by Redknapp's defence on Monday, relied heavily on the evidence provided by the former News of the World journalist, Rob Beasley, who told the court earlier in proceedings that he had paid a source £8,000 for information about the offshore bank account, "Rosie 47". Taped conversations between Redknapp and Beasley, now of The Sun, revealed discussions regarding the money being "a bonus" from Mandaric.

The judge continued: "[Beasley] came in for what you might think is justified criticism...for the methods he adopted. Whatever view you form of Beasley, he does have an unchangeable record of what was said."

The jury were reminded that part of Redknapp's defence was that the current Tottenham manager and indeed the leading candidate to succeed Fabio Capello as the next manager of England, had been told by Mandaric that tax had been paid in the United States in relation to the money invested in the Monaco bank account.

The Judge added: "If he honestly believed there was no tax in respect of UK tax, that provides Mr Redknapp with a defence to either or both charges,"

Prior to sending the jury out to consider their verdicts at 12:30 GMT on Tuesday, the judge added: "Redknapp told the News of the World that payment was his bonus for the sale of Peter Crouch. Mandaric said it was for investments."

The 73-year-old Mandaric, the current chairman of Sheffield Wednesday, claims he was providing tax free loans to Redknapp.

After the Judge's summing up, he lifted restrictions on tweeting in court in order to prevent an "unseemly rush for the door" after the announcement of the verdicts.

Four hours of deliberation subsequently followed on Tuesday afternoon, before Redknapp and Mandaric were recalled to the dock, whereby the jury were then sent home for the night having failed to reach a unanimous verdict. The judge warned the jury not to discuss the case with anyone prior to reconvening on Wednesday morning at 10:00am.

On Wednesday the jury deliberated for a further hour and a half before returning to deliver the not guilty verdicts for both men.