Milan Mandaric
Encyclopedia
Milan Mandarić is a Serbia
n-American business tycoon who has owned a string of successful businesses and football
clubs including Portsmouth
, Leicester City
and Sheffield Wednesday
. He currently is the chairman of Sheffield Wednesday. He was born near Gospić
in today Croatia
, on 5 September 1938, and grew up in the Serbia
n city of Novi Sad
, Vojvodina
.
. He sold the company to the Tandy Corporation
in 1980 and set up a new company, Sanmina, which developed high-tech telecoms products. In 2001 the company acquired SCI Systems, a much larger competitor, becoming Sanmina-SCI Corporation
. Mandarić also began branching out into investment banking operations such as Behrman Capital. He also became owner of the St. Louis Storm
, a Major Indoor Soccer League franchise that ceased operations in 1992 when the MISL also folded. He was ranked 1049 in the times top 2000 rich list worth £75m.
On 23 December 2009, he was charged with two counts of tax evasion by the Crown Prosecution Service (CPS).
, then French team OGC Nice
.
, to whom he had been introduced by ex-player Preki
.
After struggling for a number of years in the second tier of English football (now called the Football League Championship) Portsmouth won promotion as champions to the Premier League, arguably the richest football division in the world. This was due in large part to Mandarić's appointment of the experienced manager Harry Redknapp
. Mandarić appointed Velimir Zajec
as executive director, a move that caused tension between Redknapp and Mandarić. Shortly afterwards Redknapp resigned from Portsmouth.
In January 2006, Mandarić sold a 50% stake in the club to French-Israeli businessman Alexandre Gaydamak
. After the club's survival that season, Mandarić sold his remaining share of Portsmouth to Gaydamak, but stayed on as a figurehead in his role as non-executive chairman.
Mandarić resigned as chairman of Portsmouth on 21 September 2006. Since then, Portsmouth appeared to prosper, with successive top-10 Premier League finishes and an FA Cup
win in 2008; however, the club was relegated in 2010.
, believed to be in the region of £25m. He had wanted to remain outside of football for a longer period, however he "had to accelerate takeover plans" because of bids for the club by at least two other parties. On 18 November 2006 Leicester accepted his approach to take over the club at an extraordinary general meeting.
Despite setting an initial takeover deadline of 15 December, negotiations stalled, reportedly after hidden debts in the club's accounts surfaced during the due diligence
period. However, both parties dismissed reports that the takeover bid was in danger of collapse, stating that it had merely been delayed. Indeed, on 2 January the Leicester Mercury
reported that the deal was in fact close to completion after Mandarić's revised terms were accepted by the club's board.
On 15 January the paper reported that an official announcement confirming the takeover "will probably be on Thursday".
On 25 January Mandarić put his bid for Leicester on temporary hold after news of his mother's illness back in Serbia
. There were wild rumours that suggested he was on the verge of pulling out and, indeed, the delay guaranteed that manager Rob Kelly
would not enjoy the benefit of a cash injection before the season's transfer window closed on 31 January. However, Mandarić returned from Serbia to complete the deal the following week.
On 13 February 2007, Mandarić was officially unveiled as owner of Leicester City. However, that the club were still a PLC meant he did not acquire the title of Chairman for a further 23 days. In April 2007, he sacked manager Kelly and replaced him with Nigel Worthington
as caretaker manager for the last five games of the season. At the end of the season, Martin Allen was named the club's new permanent manager but Allen left after only three months in charge in August as a result of deteriorating relations with Mandarić. Gary Megson
was then appointed in September, becoming the third manager since Mandarić took over the club. Megson left after only six weeks in charge to take control of Premier League team . Ian Holloway
was Mandarić's fourth permanent manager, appointed in November 2007. However, Leicester were relegated to League One
at the end of the season for the first time in the club's history; many observers attributed this to the large turnover in managers since Mandarić took control of the club.
Mandarić was arrested on 28 November 2007 over allegations of corruption in football, along with Harry Redknapp
, Peter Storrie
, Willie McKay
and Amdy Faye. but was later released without charge.
However after stormy times things started to look up for Mandarić in the form of Leicester City being crowned champions of Coca Cola League One on 18 April 2009 under the stewardship of Nigel Pearson
. The Foxes came close to achieving a second successive promotion the following season (something not achieved by any club at this level for a decade) as they finished fifth in the Championship but lost to Cardiff City
in the playoff semi-finals.
During the close season, it was reported that Mandarić had agreed to sell Leicester City to a consortium of Thai
businessmen, but these reports were swiftly denied by club officials. However, just weeks later he sold the club for a reported £40,000,000 to Vichai Raksriaksorn
and his son Aiyawatt. It later emerged that Mandarić was a shareholder in the consortium and he was appointed chairman.
. The purchase was completed after an Extraordinary General Meeting
of Sheffield Wednesday's shareholders on 14 December 2010, during which 99.7% of shareholders voted to sell the company to Mandarić's UK Football Investments for £1. Mandarić has agreed to settle the club's outstanding debts as part of the largely confidential deal. Mandarić has stepped down as chairman of Leicester City.
Serbia
Serbia , officially the Republic of Serbia , is a landlocked country located at the crossroads of Central and Southeast Europe, covering the southern part of the Carpathian basin and the central part of the Balkans...
n-American business tycoon who has owned a string of successful businesses and football
Football (soccer)
Association football, more commonly known as football or soccer, is a sport played between two teams of eleven players with a spherical ball...
clubs including Portsmouth
Portsmouth F.C.
Portsmouth Football Club is an English football club based in the city of Portsmouth. The club is nicknamed Pompey. Portsmouth's home matches have been played at Fratton Park since the club's formation in 1898. The team currently play in the Football League Championship after being relegated from...
, Leicester City
Leicester City F.C.
Leicester City Football Club , also known as The Foxes, is an English professional football club based at the King Power Stadium in Leicester...
and Sheffield Wednesday
Sheffield Wednesday F.C.
Sheffield Wednesday Football Club are a football club based in Sheffield, South Yorkshire, England, who are currently competing in the Football League One in the 2011-12 season, in England. Sheffield Wednesday are one of the oldest professional clubs in the world and the fourth oldest in the...
. He currently is the chairman of Sheffield Wednesday. He was born near Gospić
Gospic
Gospić is a town in the mountainous and sparsely populated region of Lika, Croatia. It is the administrative centre of Lika-Senj county. Gospić is located near the Lika River in the middle of a karst field....
in today Croatia
Croatia
Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...
, on 5 September 1938, and grew up in the Serbia
Serbia
Serbia , officially the Republic of Serbia , is a landlocked country located at the crossroads of Central and Southeast Europe, covering the southern part of the Carpathian basin and the central part of the Balkans...
n city of Novi Sad
Novi Sad
Novi Sad is the capital of the northern Serbian province of Vojvodina, and the administrative centre of the South Bačka District. The city is located in the southern part of Pannonian Plain on the Danube river....
, Vojvodina
Vojvodina
Vojvodina, officially called Autonomous Province of Vojvodina is an autonomous province of Serbia. Its capital and largest city is Novi Sad...
.
Yugoslavia and Serbia
He took control of his father's machine shop aged 21, and by the age of 26 had turned it into the largest business in the country. At the time Yugoslavia was a socialist country, but a relatively free one. Private enterprise was encouraged, up to a point. Mandarić, now mass-producing car spares for the whole country and for overseas, became too successful and in the government's eyes went overnight from 'Hero' to 'Capitalist Traitor'.United States
In 1969, worried by the government's view of his business, he left Serbia and settled in the United States. He had to leave most of his fortune behind, and got a job for an American computer component manufacturer in California. When two of the senior managers left to start their own firm, Mandarić was invited to be their third partner. The firm was successful, but disagreements over manufacturing processes led to Mandarić leaving to form his own company, Lika Corporation, in 1971. In 1976, he became a naturalized citizen of the United States. By 1976 Lika Corp. was the largest manufacturer of computer components in the USA, and Mandarić was pioneering the boom that led to the creation of California's Silicon ValleySilicon Valley
Silicon Valley is a term which refers to the southern part of the San Francisco Bay Area in Northern California in the United States. The region is home to many of the world's largest technology corporations...
. He sold the company to the Tandy Corporation
Tandy Corporation
Tandy Corporation was a family-owned leather goods company based in Fort Worth, Texas. Tandy was founded in 1919 as a leather supply store, and acquired RadioShack in 1963. The Tandy name was dropped in May 2000, when RadioShack Corporation was made the official name.-History:Tandy began in 1919...
in 1980 and set up a new company, Sanmina, which developed high-tech telecoms products. In 2001 the company acquired SCI Systems, a much larger competitor, becoming Sanmina-SCI Corporation
Sanmina-SCI Corporation
Sanmina-SCI Corporation is a global electronics manufacturing services provider headquartered in San Jose, California that serves original equipment manufacturers in technology-related industries such as communications and computer hardware. Sanmina-SCI has nearly 80 manufacturing sites...
. Mandarić also began branching out into investment banking operations such as Behrman Capital. He also became owner of the St. Louis Storm
St. Louis Storm
The St. Louis Storm were a soccer team based out of St. Louis that played in the Major Indoor Soccer League. They played from 1989 to 1992. Their home arena was St...
, a Major Indoor Soccer League franchise that ceased operations in 1992 when the MISL also folded. He was ranked 1049 in the times top 2000 rich list worth £75m.
On 23 December 2009, he was charged with two counts of tax evasion by the Crown Prosecution Service (CPS).
United States
Around the same time he had begun using his money to invest in football, his passion since childhood (as a young man he had played for Novi Sad). He set up firstly F.C. Lika, then San Jose Earthquakes which played in the USA's first professional league. In 1978, he purchased an NASL franchise called the Connecticut Bicentennials and moved them to Oakland, CA to play as the Stompers. After one year in the East Bay, the team was moved to Edmonton to become the Drillers.Europe
Sceptical about the future of the sport in the USA, Mandarić looked to European football, owning first Belgian club R. Charleroi S.C.R. Charleroi S.C.
Sporting du Pays de Charleroi is a Belgian football club based in the city of Charleroi, in the province of Hainaut. Charleroi plays in the Belgian Pro League and their current spell at the highest level in Belgian football has started in the 1985–86 season...
, then French team OGC Nice
OGC Nice
Olympique Gymnaste Club Nice Côte d'Azur is a French association football club based in Nice. The club was founded in 1904 and currently plays in Ligue 1, the top-tier of French football. Nice plays its home matches at the Stade Municipal du Ray located within the city. In 2013, the club is...
.
Portsmouth
In 1998 he sold Nice and took over English club PortsmouthPortsmouth F.C.
Portsmouth Football Club is an English football club based in the city of Portsmouth. The club is nicknamed Pompey. Portsmouth's home matches have been played at Fratton Park since the club's formation in 1898. The team currently play in the Football League Championship after being relegated from...
, to whom he had been introduced by ex-player Preki
Preki
Predrag Radosavljević is a former American international soccer player of Serbian extraction...
.
After struggling for a number of years in the second tier of English football (now called the Football League Championship) Portsmouth won promotion as champions to the Premier League, arguably the richest football division in the world. This was due in large part to Mandarić's appointment of the experienced manager Harry Redknapp
Harry Redknapp
Henry James "Harry" Redknapp is a former English footballer who has enjoyed a long career in football management starting in 1983 with Bournemouth. He is the current manager of Tottenham Hotspur....
. Mandarić appointed Velimir Zajec
Velimir Zajec
Velimir Zajec is a former Croatian footballer and manager.-Career:Zajec began his career at Dinamo Zagreb in 1974, aged 18. During 10 years at the club, he helped them to two domestic cup wins, as well as the league title, their first title honour in 24 years...
as executive director, a move that caused tension between Redknapp and Mandarić. Shortly afterwards Redknapp resigned from Portsmouth.
In January 2006, Mandarić sold a 50% stake in the club to French-Israeli businessman Alexandre Gaydamak
Alexandre Gaydamak
Alexandre "Sacha" Gaydamak is a French businessman of Russian Ashkenazi Jewish descent, and also holds an Israeli passport. A member of the wealthy Gaydamak family, he is the son of Arcadi Gaydamak....
. After the club's survival that season, Mandarić sold his remaining share of Portsmouth to Gaydamak, but stayed on as a figurehead in his role as non-executive chairman.
Mandarić resigned as chairman of Portsmouth on 21 September 2006. Since then, Portsmouth appeared to prosper, with successive top-10 Premier League finishes and an FA Cup
FA Cup
The Football Association Challenge Cup, commonly known as the FA Cup, is a knockout cup competition in English football and is the oldest association football competition in the world. The "FA Cup" is run by and named after The Football Association and usually refers to the English men's...
win in 2008; however, the club was relegated in 2010.
Leicester City
On 24 February he made a bid for East Midlands club Leicester CityLeicester City F.C.
Leicester City Football Club , also known as The Foxes, is an English professional football club based at the King Power Stadium in Leicester...
, believed to be in the region of £25m. He had wanted to remain outside of football for a longer period, however he "had to accelerate takeover plans" because of bids for the club by at least two other parties. On 18 November 2006 Leicester accepted his approach to take over the club at an extraordinary general meeting.
Despite setting an initial takeover deadline of 15 December, negotiations stalled, reportedly after hidden debts in the club's accounts surfaced during the due diligence
Due diligence
"Due diligence" is a term used for a number of concepts involving either an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations...
period. However, both parties dismissed reports that the takeover bid was in danger of collapse, stating that it had merely been delayed. Indeed, on 2 January the Leicester Mercury
Leicester Mercury
The Leicester Mercury is a British regional newspaper, owned by the Daily Mail and General Trust, for the city of Leicester and the counties of Leicestershire and Rutland...
reported that the deal was in fact close to completion after Mandarić's revised terms were accepted by the club's board.
On 15 January the paper reported that an official announcement confirming the takeover "will probably be on Thursday".
On 25 January Mandarić put his bid for Leicester on temporary hold after news of his mother's illness back in Serbia
Serbia
Serbia , officially the Republic of Serbia , is a landlocked country located at the crossroads of Central and Southeast Europe, covering the southern part of the Carpathian basin and the central part of the Balkans...
. There were wild rumours that suggested he was on the verge of pulling out and, indeed, the delay guaranteed that manager Rob Kelly
Rob Kelly
Robert Anthony "Rob" Kelly is an English former footballer and manager. Recently caretaker manager at Nottingham Forest, after Steve McClaren's departure and prior to the appointment of Steve Cotterill...
would not enjoy the benefit of a cash injection before the season's transfer window closed on 31 January. However, Mandarić returned from Serbia to complete the deal the following week.
On 13 February 2007, Mandarić was officially unveiled as owner of Leicester City. However, that the club were still a PLC meant he did not acquire the title of Chairman for a further 23 days. In April 2007, he sacked manager Kelly and replaced him with Nigel Worthington
Nigel Worthington
Nigel Worthington is a former Northern Ireland international footballer and manager.He was manager of the Northern Ireland national team from 2007 until after their final Euro 2012 qualifying campaign match against Italy in October 2011.As a player, he was a left full back and occasional left...
as caretaker manager for the last five games of the season. At the end of the season, Martin Allen was named the club's new permanent manager but Allen left after only three months in charge in August as a result of deteriorating relations with Mandarić. Gary Megson
Gary Megson
Gary John Megson is an English former football player and is currently manager of Sheffield Wednesday.He has previously managed Norwich City, Blackpool, Stockport County, Stoke City, West Bromwich Albion, Nottingham Forest, Leicester City and Bolton Wanderers...
was then appointed in September, becoming the third manager since Mandarić took over the club. Megson left after only six weeks in charge to take control of Premier League team . Ian Holloway
Ian Holloway
Ian Scott Holloway is an English football manager and former player. He became the manager of Blackpool in May 2009. Holloway is well-known amongst football fans for his off-the-wall interviews, with a wide selection of quotes and soundbites being printed. Holloway's playing career spanned 18...
was Mandarić's fourth permanent manager, appointed in November 2007. However, Leicester were relegated to League One
Football League One
Football League One is the second-highest division of The Football League and third-highest division overall in the English football league system....
at the end of the season for the first time in the club's history; many observers attributed this to the large turnover in managers since Mandarić took control of the club.
Mandarić was arrested on 28 November 2007 over allegations of corruption in football, along with Harry Redknapp
Harry Redknapp
Henry James "Harry" Redknapp is a former English footballer who has enjoyed a long career in football management starting in 1983 with Bournemouth. He is the current manager of Tottenham Hotspur....
, Peter Storrie
Peter Storrie
Peter Storrie was a Director and the Chief Executive Officer of English Premier League team Portsmouth. He had formerly worked for West Ham United, Southend United and Notts County.-West Ham United:...
, Willie McKay
Willie McKay
Willie McKay is a Scottish football agent based in Monaco. He is the agent of many top-level footballers, mainly based in England and France - specifically the Premier League...
and Amdy Faye. but was later released without charge.
Nigel Pearson
Nigel Graham Pearson is an English football manager and former professional player. He is currently in his second spell as manager of Leicester City, having previously managed Hull City, Southampton and Carlisle United, and been assistant manager for England Under-21s and Newcastle United...
. The Foxes came close to achieving a second successive promotion the following season (something not achieved by any club at this level for a decade) as they finished fifth in the Championship but lost to Cardiff City
Cardiff city
Cardiff City may refer to:* Cardiff city centre* Cardiff City Council* Cardiff City F.C.* Cardiff City L.F.C.* Cardiff City Stadium...
in the playoff semi-finals.
During the close season, it was reported that Mandarić had agreed to sell Leicester City to a consortium of Thai
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
businessmen, but these reports were swiftly denied by club officials. However, just weeks later he sold the club for a reported £40,000,000 to Vichai Raksriaksorn
Vichai Raksriaksorn
- Biography :Raksriaksorn is ranked by Forbes Magazine as the 35th richest man in Thailand. He is the founder and CEO of King Power Duty Free, an operator of duty-free shops. In December 2009, King Power received the royal warrant from the King of Thailand in a ceremony attended by Raksriaksorn.In...
and his son Aiyawatt. It later emerged that Mandarić was a shareholder in the consortium and he was appointed chairman.
Sheffield Wednesday
On 29 November 2010, Mandarić agreed to purchase Sheffield WednesdaySheffield Wednesday F.C.
Sheffield Wednesday Football Club are a football club based in Sheffield, South Yorkshire, England, who are currently competing in the Football League One in the 2011-12 season, in England. Sheffield Wednesday are one of the oldest professional clubs in the world and the fourth oldest in the...
. The purchase was completed after an Extraordinary General Meeting
Extraordinary General Meeting
An extraordinary general meeting, commonly abbreviated as EGM, is a meeting of members of an organisation, shareholders of a company, or employees of an official body, which occurs at an irregular time. The term is usually used where the group would ordinarily hold an annual general meeting , but...
of Sheffield Wednesday's shareholders on 14 December 2010, during which 99.7% of shareholders voted to sell the company to Mandarić's UK Football Investments for £1. Mandarić has agreed to settle the club's outstanding debts as part of the largely confidential deal. Mandarić has stepped down as chairman of Leicester City.