Thais curry favour as Reds bid approved ‘in principle’

THAILAND’S billionaire prime minister said his country’s bid for a stake in Liverpool football club had been approved in principle by the club’s board.

Thailand’s cabinet also backed a plan to fund the 4.6 billion baht (88.75m) deal through a one-off state lottery.

“In principle, they have no problem with our offer,” Thaksin Shinawatra said yesterday.

“By the end of June, we will own a stake in a premier league club.”

The deal has boosted Thaksin’s flagging domestic popularity, but it is unlikely to go down well with Liverpool-based fans who favoured a rival bid from building tycoon Steve Morgan that was rebuffed by the board last week.

Although details are still emerging, it appears a government sports board will give the club a significant cash injection to buy a 30% stake. Thailand, where Liverpool are hugely popular, will in return be able to market some of its products using the club’s name.

A senior official in Thaksin’s office said the club called Thai negotiators at 9am on Monday to accept the deal.

“We are waiting for final written confirmation,” he said. An official from the club’s business advisors, however, said the Thai proposal was not confirmed.

“Until the negotiations are finalised, the deal’s not finished. But our discussions regarding the Thai proposal are progressing,” Paul Baines, managing partner at Hawkpoint, the corporate advisory firm appointed to advise Liverpool, said.

The club is 51% owned by chairman David Moores, whose family has had control for half a century, and 9.9% owned by television company Granada.

Thaksin has said the Thai offer would inject £45m into the club, which needs investment to buy new players and help fund construction of a bigger stadium. The rest will go to buy shares from existing shareholders.

But critics say the money will be wasted.

“Thailand is a poor country and the money should be better spent for developing the country. For improving the life of our people,” said Senator Klaew Norapati, among at least 10 senators who oppose the deal.

Thaksin, who insists the deal will benefit Thai soccer and the country, said “minor points” such as the number of Thai representatives on the club’s board were still to be worked out.

Those details will be negotiated with Liverpool shortly, said Santiparb Tejavanija, head of the Sports Authority of Thailand (SAT), the state body overseeing the investment.

Thailand’s cabinet approved a plan to set up a company to manage the investment and raise funds to finance the purchase.

It seeks to raise 10 billion baht (193m) via a one-off state lottery, with the proceeds to pay for the deal and “long-term sports development” in the country.

The company will be 60% government-owned and financed with lottery funds.

The remaining 40% will be owned by the public who will own shares through the purchase of the lottery tickets, said Somchainuk Engtrakul, a senior official at the Finance Ministry.

The bid has drawn a mixed response from Liverpool fans in England after the British media carried reports on Thailand’s human rights record, especially a “war on drugs” last year in which more than 2,500 Thais were killed.

Thaksin dismissed the controversy and said they may bid for other English clubs if the Liverpool deal falls through.