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Is Man City In A Financial Meltdown?

The British newspapers today are all noting that Ukranian club Shaktar Donetsk have reported Manchester City to FIFA over the £475,000 (600,000 euros) still owed to them over the transfer last summer of Brazilian Elano.

According to the Daily Mail:

“The money is a ‘solidarity payment’ on European transfers. It usually equates to five per cent of the total sum – in this case £9.5m – and is distributed between clubs that played a part in the youth development of the player. Donetsk claim City have withheld the money and the case will now be heard by FIFA.”

Manchester City’s chairman and owner Thaksin Shinawatra is having problems financing the Barclays Premier League club and the club is in turmoil. Rumor has it that a City have take a £30 million pound injection of cash as a draw against their future television earnings. This is the sort of risky financial transaction that sunk Leeds United a few years ago and must worry all Man City fans. If City are having problems raising cash, then the only solution is to hold a fire sale and sell their best players which will probably result in manager Mark Hughes walking out the door.

Though times in Manchester these days for football fans!