Accounts justify fans’ growing fear for future at St Andrew’s
THE publication of Birmingham City’s accounts was never going to brighten up anyone’s Monday morning.
The club has been haemorrhaging money from the moment Birmingham Sports Holdings Ltd (BSHL) completed their purchase in late 2016.
Blues lost an enormous £37.5 million for the financial year ending 2018, which makes the £24.8m deficit posted in this year’s accounts seem like a step in the right direction.
But the accumulation of losses during their tenure, now totalling more than £110m since the end of the 2016/17 season, puts Blues in a scary position.
And it would have been a lot worse without the big-money sales of Che Adams and Jude Bellingham bringing some much-needed green to the balance sheets.
Despite the losses, on paper this football club is still an attractive proposition – hence why consortiums keep coming forward. Sources close to the Jeremy Dale deal claim there is no shortage of potential investors out there for a club of Blues’ stature.
Of greater concern is the heat these financial figures will attract from the EFL. Blues are already under investigation and face the possibility of another points deduction after it was alleged that people have been allowed to act as ‘Relevant Persons’ without EFL approval.
That charge relates to the failed takeover of local businessman Paul Richardson and ex-Barcelona footballer Maxi Lopez, whose bid to buy the club fell through in December.
It has been revealed that Richardson and Lopez’s Maxco Capital provided the club with almost £8m in working capital last year.
Supporters are desperately hoping Dale’s efforts to buy out BSHL pay off. At this stage, you have to ask yourself what BSHL is getting out of owning a loss-making machine where they are public enemy number one.
After a week where one of the club’s Championship rivals received a points deduction, and another stands on the brink of one for allegedly failing to adhere to an EFL business plan, Blues fans are only too aware that a similar fate could await their club.
A huge turnaround in players is expected again this summer, with Blues needing to cut their £31.1m wage bill. There are only a handful of players under contract for next season as things stand.
This cycle won’t change until BSHL sells up. The hope is that these figures and possible EFL sanctions, as concerning as they are, will at least force them to cooperate with bidders and bring about a change in ownership.