Fresh worries over Thaksin's grip in wake of simmering cash-flow woes
Thaksin (left) is also no longer guaranteed the support of the Premier League, which has been monitoring his trials and tribulations with interest. -- PHOTO: AP
LONDON: Doubts about the future of Thaksin Shinawatra at English football club Manchester City have grown, now that it has emerged that the Thai owner is resorting to short-term loans to pay staff wages.
He created more unwanted headlines on Monday when he arrived in London seeking political asylum, having refused to attend the start of a corruption trial in his country.
But his fragile grip on affairs at City appears weaker than ever after the latest revelations surrounding his unstable regime.
John Wardle, who preceded Thaksin as chairman, resigned from the board last month in despair at the way that the club was being run.
But before doing so, he loaned Thaksin £2 million (S$5.4 million) to ensure that staff would be paid.
He has since been repaid in full, with all staff having received their wages, but the club's apparent need to borrow shows that it is operating on a hand-to-mouth basis.
Thaksin, a telecommunications tycoon and a former Thai prime minister, won instant popularity among City's fans a year ago when, having bought the club, he immediately sanctioned £40 million worth of new signings, such as Vedran Corluka, Martin Petrov and Elano.
But it has now emerged that, with little of the money paid upfront, the outstanding payments on those deals are restricting activity in the transfer market under Mark Hughes, the new manager who replaced former England boss Sven-Goran Eriksson in June.
The £18 million deal to sign Jo, the Brazil forward, from CSKA Moscow earlier this summer was similarly structured and, Hughes is said to be shocked at the manner in which the club is run.
He wants to secure at least two signings before the transfer window closes on Aug 31, but there are serious and growing concerns about the cash- flow situation.
For the past year, Thaksin has been working on the basis that he will be able to bankroll the club once he gets his hands on £800 million of his assets, which are frozen in Thailand. But, as the former leader continues his battle against the authorities in Bangkok, his prospects of gaining access to that money appear more remote than ever.
Thaksin is also no longer guaranteed the support of the Premier League, which has been monitoring his trials and tribulations with interest.
City, meanwhile, also face the threat of legal action from Tottenham Hotspur after pulling out of an £8 million deal that was to result in Corluka, the Croatia defender, moving to White Hart Lane.
Bookmakers have slashed the odds against Hughes being the first managerial casualty of the season.
