Wednesday boss gave Redknap cash ‘out of friendship’

Mr Mandaric, former chairman at Portsmouth, insisted payments totalling £189,000 made into the account were nothing to do with Mr Redknapp’s employment as manager of the south coast club.

Both Mr Mandaric and Mr Redknapp, who is now manager of Spurs, deny the payments were made through the Monaco account to evade tax.

Giving evidence in his defence, Mr Mandaric told Southwark Crown Court: “I want to do something special for Harry because he means more to me than a football manager. This was something as a friend.

“If this was something to do with employment, I would have done something entirely different.

“This is entirely my voluntary thanks without contract. Something special for my friend from football into friendship territory. That’s all I wanted to do.”

He added: “I want to make it absolutely clear that it was completely away from his duties, his bonuses, his salaries... It has nothing to do with it. It is an entirely different subject.”

Earlier, Mr Mandaric outlined how he had become rich after leaving Serbia for the US where he set up factories manufacturing circuit boards for computers.

After building seven factories in Los Angeles, he sold the company to Tandy in 1980.

Mr Mandaric told the court he became interested in owning football clubs as the sport began to expand in America.

He said: “In 35 years in football, I never had a closer relationship as a manager than I had with Harry.”

Mr Redknapp joined Portsmouth – initially as a director of football – in 2001. Mr Mandaric said he asked him to take on managerial responsibilities as they became close.

He added: “My ambition first and foremost was to put the club back on track and save it from financial ruin.”

Prosecutors say Mr Redknapp dodged tax by receiving £189,000 in transfer bonuses in a Monaco account in the name of his dog, Rosie.

One of the payments during his time at Portsmouth was over the £3m profit the club made on the sale of England star Peter Crouch, the jury has been told.

Mandaric said his relationship with Redknapp “started to go a little bit uncomfortable” amid frustration over fees being paid to agents.

He also said he lost more than £10m in one year from investments.

When asked by Redknapp about the Monaco investment, Mandaric said: “I said ‘Harry, it does not look good. Actually it’s disaster all over the world’.”

The trial continues.