If an article that appeared on Daily Mail is anything to go bye then Kanu may just have the faith of Portsmouth, a club he helped win the FA cup in 2008, in his hands. The article mentioned Portsmouth Administrator Trevor Birch, had warned that the club could be liquidated in about two to three weeks if urgent steps are not taken to inject liquidity (cash) into the club. Part of the urgent steps was for players like Kanu to take a pay cut for the club to remain in business. However, Kanu has put in a transfer request seeking to leave the club. But in seeking his transfer, kanu has demanded that he be paid the £3m he is being paid by the club a demand which Birch claims may finally send the club into liquidation. Birch, though acknowledged it was no fault of Kanu to demand for his money as the present state of te club was not his making.
The State of Portsmouth must be dire for Kanu’s £3m demand to be such a threat to its survival. What this means essentially is that the club has no money to pay its short term creditors, a situation that can lead a club to Bankruptcy. In situations like this, the only saving grace for the club is for a buyer to come up with enough money that will pay of creditors and also inject money that will be to run the operations of the club. Buyers of businesses like this, typically demand, huge cuts in operational cost, wage cuts and laying off staffs if they are to invest their money. Therefore if they do not get assurances that certain obligations will be cut, such as Kanu’s demand, they may not inject the much needed cash needed for the clubs survival.
As for Kanu though, I guess he needs his money and really is left with little choice. One little choice he may have is to defer his payment till the club has a new buyer. He could go for a deal that sees the club pay him his money over the next 24 months with an interest rate that is 2% higher than the prime lending rate. He could also even buy the club considering his long standing interest in English football and wide connections in Europe. For now though, Portsmouth is on the brink and Kanu may just be the savior or foe as the case may be.