Championship Club - Birmingham City Latest Club Accounts 2021/22

[Ericsladkilnhurst]

Birmingham City Latest Club Accounts 2021/22

Birmingham City posted their latest club accounts for the 2021/22 financial year.
The club posted losses of £24.8m with Companies House

Owners Birmingham Sports Holdings Ltd [BSHL] bought the club in 2016.

Losses over the years included £37.5m financial year ending 2017/18

Losses since buying the club 2016/17 season to 2021/22 season over £110m

Losses in 2020/21 financial year was £5.5m
But the sale of players Che Adams & Jude Bellingham helped keep the losses down.

But with a £24.8m loss financial year 2021/22 brings a increase of £19.3m

The club knows it needs to cut the wage bill from £31.1m with some big earners
contracts ending at the season end.

There was a failed takeover of Birmingham City in December 2022 by Paul Richardson
& Maxi Lopez, even though the deal fell through, they had provided the club with
almost £8m in working capital last year.

[Brin]

Performing on a knife edge. When are these stupid owners going to learn to stop paying over inflated wages for players who simply can't deliver what they want in return? We may be a yo-yo club but Tony Stewart must be the most admired Chairman in all four Leagues.
I'll have that all day if my club looks to continue operating effectively and not live above it's means.

When the bubble really bursts on these so called big clubs of this league, all I will say is, 'It serves em bloody right'

[Ericsladkilnhurst]

EFL To Sanction The Three Men Behind The Failed Birmingham City Takeover.

The EFL set to announce a set of sanctions for the 3 men who tried to buy Birmingham City last year.

Following a 5 month investigation, the EFL charged former Barcelona striker Maxi Lopez, British
businessman Paul Richardson, & former Charlton Athletic Chief Executive Matt Southall with alleged
breaches of its owner's & director's test [ODT] in February 2023.
The 3 were the main men of MAXCO a company set up in early 2022 to buy Birmingham City, but their
proposed, two stage £35m takeover collasped in December 2022.
According to the EFL, they have been running the club, without formal approval, which is against the rules.

Maxi Lopez - Accepted a 1 month ban from involvement with a EFL club, which was suspended until the
end of the 2023-24 football season.
Paul Richardson - Agreed to a 2 month period of ineligibility, which was suspended until the end of the
2023-24 season.
Matt Southall - Given a 6 month ban, with 3 of them suspended, as the EFL considered his breaches of
the ODT rules to be the most serious.
Southall was MAXCO's nominated consultant at the club & made no secrets of his close involvement in
Birmingham City's summer transfer window, or their plans for the January transfer window.
Southall & his partners believed his actions were within the spirit of the regulations, given the fact the
Chinese owners of Birmingham City, were more than happy for MAXCO to start funding the clubs losses,
& the urgent work needed to repair Birmingham City stadium.

EFL costs - Lopez, Richardson & Southall agreed to make contributions to the EFL's costs.
Lopez & Richardson will both pay £20,000, with Southall to contribute a further £5,000.

The situation has been resolved, but charges against the club, & shareholder Vong Pech who agreed to
sell his minority stake in Birmingham City, are still ongoing.
Vong Pech's sale was set to be the first stage of the takeover involving MAXCO.

EFL - In a separate investigation, looking into the current ownership structure at Birmingham City.

Verdict -
The EFL give two of the men involved a suspended term, the third man gets 3 months of his 6 month's
term suspended.
All 3 men caught with their trousers down, funding the club openly with a reported £8m, which could
have been used for incoming players last summer 2022 or the January transfer window 2023.

The owners of Birmingham City - Birmingham Sports Holdings Ltd [BSHL] having money problems,
They are fighting to stay on the Hong Kong Stock Exchange.

[avondalemiller]

....and the above just shows why we can't keep the likes of Barlaser, Crooks, Vaukes, Ajayi....and many more, hopefully not Cheio and Viktor..of all the players what we sold for decent money, none of them went on to a Premiership club, some lower than where we are now....

.....it's going to go boom 1 day, with a capital B.....

[mellowmiller]

....and the above just shows why we can't keep the likes of Barlaser, Crooks, Vaukes, Ajayi....and many more, hopefully not Cheio and Viktor..of all the players what we sold for decent money, none of them went on to a Premiership club, some lower than where we are now....

.....it's going to go boom 1 day, with a capital B.....

avondale, I completely agree with your sentiments and it's situations like the Birmingham one that get us all frustrated.
However, people have been saying that football will implode big time pretty much since the advent of the Premier League in 1992......but it never happens!
And that's mainly because the authorities seem to bend over backwards to help the so-called bigger clubs when they get into financial difficulties (eg Derby) and the sanctions they impose on clubs that break the financial rules are pitifully inadequate (eg Wigan, Reading, Sheffield Wednesday).
Meanwhile smaller clubs like Bury and Macclesfield are cast aside because they are considered to be insignificant in the scheme of things and were never likely to bother the upper reaches of the football pyramid.
Nothing will change unless a ruthless example (relegated or allowed to fold) is made of a big club that breaches the rules but I don't think anyone really believes that will ever happen.

[LittleSquirt]

[
Nothing will change unless a ruthless example (relegated or allowed to fold) is made of a big club that breaches the rules but I don't think anyone really believes that will ever happen.[/QUOTE]

It already has: Rangers.
And all that happened is they had a two year blip in their history while they had more money chucked at them while they climbed up the leagues. They still had the finances to buy themselves out of the minor Scottish leagues and the only negative impact was on the other teams in those leagues that only had 1 promotion place to place for.

[mellowmiller]

[
Nothing will change unless a ruthless example (relegated or allowed to fold) is made of a big club that breaches the rules but I don't think anyone really believes that will ever happen.

It already has: Rangers.
And all that happened is they had a two year blip in their history while they had more money chucked at them while they climbed up the leagues. They still had the finances to buy themselves out of the minor Scottish leagues and the only negative impact was on the other teams in those leagues that only had 1 promotion place to place for.[/QUOTE]

Scottish football bears absolutely no resemblance to the EPL or EFL.
There are only two clubs of note in Scotland so it's hardly surprising that one of them managed to recover quickly is it?
I'm pretty sure Derby, for example, wouldn't have found it so easy to get back from League 2

[Brin]

Leeds United don't want an independent advisor to be brought in....I wonder why?

https://www.bbc.co.uk/sport/football/65224822

[Ericsladkilnhurst]

EFL To Sanction The Three Men Behind The Failed Birmingham City Takeover.

The EFL set to announce a set of sanctions for the 3 men who tried to buy Birmingham City last year.

Following a 5 month investigation, the EFL charged former Barcelona striker Maxi Lopez, British
businessman Paul Richardson, & former Charlton Athletic Chief Executive Matt Southall with alleged
breaches of its owner's & director's test [ODT] in February 2023.
The 3 were the main men of MAXCO a company set up in early 2022 to buy Birmingham City, but their
proposed, two stage £35m takeover collasped in December 2022.
According to the EFL, they have been running the club, without formal approval, which is against the rules.

Maxi Lopez - Accepted a 1 month ban from involvement with a EFL club, which was suspended until the
end of the 2023-24 football season.
Paul Richardson - Agreed to a 2 month period of ineligibility, which was suspended until the end of the
2023-24 season.
Matt Southall - Given a 6 month ban, with 3 of them suspended, as the EFL considered his breaches of
the ODT rules to be the most serious.
Southall was MAXCO's nominated consultant at the club & made no secrets of his close involvement in
Birmingham City's summer transfer window, or their plans for the January transfer window.
Southall & his partners believed his actions were within the spirit of the regulations, given the fact the
Chinese owners of Birmingham City, were more than happy for MAXCO to start funding the clubs losses,
& the urgent work needed to repair Birmingham City stadium.

EFL costs - Lopez, Richardson & Southall agreed to make contributions to the EFL's costs.
Lopez & Richardson will both pay £20,000, with Southall to contribute a further £5,000.

The situation has been resolved, but charges against the club, & shareholder Vong Pech who agreed to
sell his minority stake in Birmingham City, are still ongoing.
Vong Pech's sale was set to be the first stage of the takeover involving MAXCO.

EFL - In a separate investigation, looking into the current ownership structure at Birmingham City.

Verdict -
The EFL give two of the men involved a suspended term, the third man gets 3 months of his 6 month's
term suspended.
All 3 men caught with their trousers down, funding the club openly with a reported £8m, which could
have been used for incoming players last summer 2022 or the January transfer window 2023.

The owners of Birmingham City - Birmingham Sports Holdings Ltd [BSHL] having money problems,
They are fighting to stay on the Hong Kong Stock Exchange.

EFL Statement - Regarding Breach of EFL Regulations.

The three men Matthew Southall, Paul Richardson, & Maxi Lopez, have all admitted to breaching EFL regulations
in respect of the owners & directors test [OADT], following their unapproved involvement with Birmingham City
Football Club in 2022.
Following a investigation, the three individuals have accepted that they acquired control of the club, without
going through the appropriate sign-off procedure with the EFL.
In Addition, Matthew Southall also accepted a charge of misconduct after admitting to signing a false declaration
regarding his role as a relevant person under EFL regulations.

As a result of admitting the charges, Southall is now prohibited from being a relevant person, for a period of
6 months, 3 months suspended until the end of the 2023-24 season.
Richardson banned as being a relevant person for a period of 2 months, suspended until the end of the 2023-24
season.
Lopez banned as being a relevant person for a period of 1 month, suspended until the end of the 2023-24
season.

All 3 individuals , who are liable for £45,000 of the associated costs with the investigation, have entered into an
agreed decision with the league as provided for in the regulations.

.................................................. .................................................. .................................................. .......
Birmingham City Ownership

The clubs owner, Birmingham Sports Holdings Limited, has announced on the Hong Kong stock exchange that two
letters of intent have been entered into with a potential purchaser.

This is in relation to the exclusive negotiations of two potential transactions.

One transaction would involve the disposal of -
24% of the shares in Birmingham City Plc by Birmingham Sports Holdings Limited.

The other transaction would involve the disposal of -
21.64% of the shares in Birmingham City Plc by Oriental Rainbow Investments Limited,
& the entire issue share capital of Birmingham City Stadium Limited by Oriental Rainbow Investments Limited
& Achiever Global Group Limited.

The parties involved will now enter a period of exclusive negotiation to agree the final terms of transactions
which will formulate the definitive agreements.
The deal agreements are expected to be entered into within 2 months of the date of the letters of intent, at which
time the potential purchaser will also be announced.

The transactions will be conditional upon the fulfilment of the terms in the definitive agreements, including the
approval & consent of the English Football League [EFL].

[Ericsladkilnhurst]

Regarding Breach of EFL Regulations

Birmingham City to be deducted 2pts, suspended until the end of the 2023-24 season.

What a farce, how can the EFL give such a ruling. ought to have been a relegation or a
12 point deduction for the start of the new season at least.