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Birmingham will meet UEFA financial regulations

Tue 8th Mar 2011 | Money & Finance

Birmingham City Football Club are confident they will meet the financial criteria which will enable them to compete in Europe next season after their Carling Cup triumph.

Birmingham, who beat Arsenal to win the Carling Cup were subject to reports that they may not be able to compete in the Europa League unless they can assure the Premier League, UEFA and the Football Association their financial future is secure.

But talk the clubs financial situation has prompted acting chairman Peter Pannu to allay those fears after a statement by Birmingham International Holdings - the club's parent company - to the Hong Kong Stock Exchange revealed the size of the clubs debt.

That revealed Birmingham and other Hong Kong-based business had total debts in excess of £29million.

It also emerged last week that owner Carson Yeung has put some of his own properties up as collateral for a multi-million pound loan.

This would be used to "provide sufficient financial resources" to allow the business to continue "without significant curtailment of its operation".

Pannu told City's official website: "It is important to note that Birmingham City (the football club) is a separate corporate entity from BIHL (a listed company in Hong Kong).

"Although a distant subsidiary, Birmingham City FC's accounts are separate and it operates on its own financial basis.

"Birmingham City FC is in credit with their bankers and there is no financial impediment to its operations.

"We will have no problem securing UEFA license approval (to play in Europe) for which the club had already filed the papers.

"As for Birmingham International Holdings Limited, the financial support by a major shareholder is a common occurrence and there is no cause for concern or any direct links to Birmingham City FC's well being."

A Birmingham spokesman said on Monday: "To reiterate, there are no problems with the day-to-day running of the business.

"The board are looking to raise capital to invest into the business."

 

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