Wednesday 8 April 2009

City's financial losses nearly tripled and its net assets shrank by more than 50% when Thaksin Shinawatra was the club's chairman, it has been revealed.

Shinawatra, who is currently on the run after being sentenced t two years in prison for corruption, encouraged the losses that were caused significantly by a £50 million expenditure on players.

The former Thai Prime Minister's personal promises of wealth for City were unfulfilled as the asset value of the club fell from £57.2m to £24.5m under his reign.

Group accounts for Manchester City Ltd. show a pre-tax loss of £32.6m before May 31st 2008, nearly tripling the £11m loss posted a year ago.

The immense spending spree by then-manager Sven Goran Eriksson was authorized by Shinawatra, who didn't have the finances himself to back the transfer frenzy after his reported £1.18bn assets were frozen by authorities when he was removed from his position of Prime Minister.

Shinawatra sold a 90% stake in the club to Sheikh Mansour's Abu Dhabi Group Investment and Development for £210m on transfer deadline day back in August 2008. Since then, plans for a City academy in Thailand have been shelved and merchandise removed from stores.

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