Birmingham City FC in a Perilous Financial Position
By Community | March 8, 2012
Birmingham City FC financial woes have left the club in a sticky situation, to either win promotion to the Premier League or go into administration according to the Daily Mail.
Figures obtained by newspaper show the club will run out of money unless they rise out of the Championship. They stand sixth but are losing £10million a year.
The sales of Liam Ridgewell and Jean Beausejour mean the club have enough cash to get through the play-offs but, unless more is found, it will run out by June with the relegation from the Premier League causing this current situation.
The publication of the year’s accounts has already been delayed until April 30 and the club are subject to a Football League transfer embargo.
The figures are expected to show a small profit. But this has been generated by the summer sales of Roger Johnson and Craig Gardner for almost £10m as well as Ridgewell and Beausejour, and with contracts such as the £2.5m a year paid to Nikola Zigic, they are heading for more losses next season.
The club cannot raise cash by remortgaging St Andrew’s as HSBC hold the deeds to the ground as security on an outstanding loan.
The bank have withdrawn a £7m overdraft, further increasing pressure on the club’s absent owner Carson Yeung, who is facing fraud charges in Hong Kong relating to £59.7m in a case of alleged money laundering.
by Ismail Uddin