Announcements were made by both Birmingham City FC and Birmingham Sports Holdings today that have financial ramifications for the immediate future of the football club. BCFC confirmed that they have sold naming rights to both St Andrew’s and the Wast Hills training complex while BSH have confirmed another share subscription deal that sees Dragon Villa become their second biggest shareholder.
Further evidence of financial meltdown swirling around B6 became further apparent today after news broke of an unpaid tax bill. According to various reports £4.2million was owed to Her Majesty’s Revenue and Customs, with the taxman threatening a winding up order if payment is not made within seven days.
Saturday saw Fulham complete their return to the Premier League after winning the playoff final at Wembley. While the Cottagers can now go forward with plans to spend and improve their team, the losing team are stuck with another year in the second tier despite bold hopes this season. Is this finally the time for the Birmingham Power Shift (© H-Bomb of SHA) to kick in?
With the transfer window opening as of midnight on Thursday, clubs in English league system can now buy and sell players again. However, that situation may be complicated in the Championship as this website has learned that as more than a dozen Championship clubs have been found to be in breach of FFP regulations.
With the summer transfer window due to open on Thursday May 17, the topic of Financial Fair Play is still a thorny one online. In the absence of any official information from either the EFL or from the club there is still a question as to where Blues stand with respect to FFP.
Birmingham Sports Holdings today confirmed in an announcement to the Stock Exchange of Hong Kong a warning of a substantial increase in loss in the interim accounts which are due to be published at the end of February.
Birmingham City were exceptionally busy in the transfer window, with 14 players coming into the club while the same number left on loan and permanent deals. With all that action going on, how much money did the club spend and is it likely there is much more available?
It’s been no secret that the government of the People’s Republic of China have targeted companies in an attempt to scale back their investment activities abroad. News has broken in the last day that this has now been somewhat clarified, with investment in sports clubs including football in the “restricted” category.
Financial Fair Play was put into place to try to even the playing field. It was a measure to stop clubs from overspending in a bid to reach the top flight and gain an unfair advantage against those who were frugal. It’s fair to say it’s not working.