Blues supporters welcome £26m loan to football club

A SUPPORTERS’ trust has given a “cautious welcome” to the news that Birmingham City’s owner is planning to explore new ways of generating revenue for the club.

Last week, Trillion Trophy Asia announced it had agreed to provide a loan worth up to HK$250 million – around £26 million – to Birmingham International Holdings Ltd (BIHL).

In a statement to the Hong Kong Stock Exchange, Trillion Trophy said the money would be used to help BIHL explore new ways of generating income including sports education, online games and entertainment.

Responding to the new, Blues Trust said it recognised that, for Birmingham City to be successful, it had to compete off the pitch as well as on it by boosting its financial might.

It said: “The loan to the Blues holding company is noted with interest by the trust.

“The trust recognises that, at the highest levels of football, particularly the Premier League and Championship, the ability of a club and its team to succeed can be significantly assisted by its ability to compete financially.

“This can depend on finding innovative ways of generating revenue streams to complement the more traditional sources, such as season tickets and shirt sales.

“We would therefore give a cautious welcome to the intention of Trillion Trophy to do this while at the same time having some reservations about what might happen should the additional revenue streams not be forthcoming by December 31, 2018, the date of repayment of the loan, or sooner if Trillion Trophy chooses to terminate the agreement.”

Led by Hong Kong businessman Paul Suen, Trillion Trophy completed the deal to buy Birmingham City in October, bringing to an end a controver- sial tenure at the previous owners.

At the time the deal went through, Mr Suen promised to plough more than £12 million into the Blues playing squad, starting with the January transfer window.

In last week’s update, Trillion Trophy said: “While Trillion Trophy intends to continue with the existing business of the group, it will assist it to identify suitable business opportunities to broaden its income streams.

“BIHL will further develop its principal football business and strive to enhance the operation and value of the existing operation.

“Moreover, leveraging the experience of the directors, BIHL is identifying business opportunities including sports, sports education, culture as well as online games and entertainment.

“In line with the expansion plan, the company plans to expand its office space and recruit new staff in Hong Kong.

“Riding on the economic growth of China, the company also plans to set up new entities in China to explore potential business opportunities.” club for its