VSI
Dallmeier

Business Directory

Browse the Directory

Sign Up to the Directory

Levy
FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

Birmingham's finances put Europa place at risk

Fri 15th Apr 2011 | Money & Finance

Birmingham City’s uncertain financial situation looks as if it could cost the club its Europa League place next season.

Birmingham must convince the Premier League and the Football Association that their finances are not a major cause for concern.

According to reports, the Premier League is set to hold discussions with the Birmingham board this month before deciding in conjunction with the FA whether they should be granted a UEFA license and allowed to play in the Europa League, for which they qualified after winning the Carling Cup.

Rumours persist at the state of Birmingham’s finances following reports that the club’s parent company, Birmingham International Holdings announced that Carson Yeung was preparing to mortgage his private properties in a cash-raising exercise. The statement to the Hong Kong stock exchange added that without fresh funds the business may suffer "significant curtailment of its operation".

Yeung, who became the club’s largest shareholder buying 16% stake in 2010, purchased a further 8.6% stake earlier this week and is understood to have provided written assurances to the Premier League last year in relation to the club's finances.

Financial disclosure rules brought in after the collapse of Portsmouth last year, requires clubs to submit "independently audited accounts to the Premier League by 1 March each year with requirements to note any material qualifications or issues raised by auditors". Clubs are also required to submit "future financial information" to the Premier League by 31 March each year that "will act as an improved early warning system should any club take undue financial risks which may have consequences for future financial stability".

It’s understood that the accounts for Birmingham City Football Club and their parent company, Birmingham International Holdings, included qualifications in their audit reports about both companies' ability to continue as a "going concern".

A spokesman for the Premier League told the Guardian: "Under our financial criteria all the clubs have to submit future financial information. There are a number of triggers that would result in us taking a closer look at a club's financial circumstances, such as an 'emphasis of matter' [eg a doubt on the club's ability to continue as a going concern] on the accounts. This could result in measures being placed upon a club to ensure its sustainability going forward."

Peter Pannu, Birmingham's acting chairman, maintains that the club remains on a sound financial footing. "The finances of the club in terms of profit and loss are fine and with the continued support of Carson Yeung we do not envisage any foreseeable problems," he said. "It is routine procedure for the Premier League and UEFA to look at the club's books, especially as we are now eligible for European competition."

---------------------------------------------------------------------------------------------------

Advertisement - KABA Turnstiles

 

RETURN TO LATEST NEWS SECTION

 

SUBSCRIBE TO THE F.C. BUSINESS RSS FEED

 

If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk or ryan@fcbusiness.co.uk

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

Chancellor Misses Rate-Relief Open Goal In Budget

Thu 9th Mar 2017 | Money & Finance

Rate relief for football in the community: An open goal for Government in 2017 Football clubs, large and small, will not benefit from any substantive ‘give-aways’ following the Chancellors...

Leicester City make pre-tax profit of 16.4m after winning Premier League

Thu 2nd Mar 2017 | Money & Finance

Leicester City today announced its financial results for the year ending 31 May, 2016 – a period of continued growth and unprecedented success for the Football Club. An historic, captivating...

Liverpool FC announces financial results for year to May 2016

Wed 1st Mar 2017 | Money & Finance

Liverpool FC has filed its annual accounts for the year to May 31, 2016 reporting that revenues are continuing to grow, creating further financial stability for the club. Overall revenue increased to...

Wolverhampton Wanderers Post 5m Profit

Tue 28th Feb 2017 | Money & Finance

Wolverhampton Wanderers have posted a profit of over £5m in their latest accounts. The club’s headline financial information shows a pre-tax profit of £5.831m for the year ending 31...