Football : Financially could Birmingham City F.C. go the way of Portsmouth?
• Accounts reveal unnamed director is being paid £687,611
• Carson Yeung is awaiting trial for money-laundering
The Blues Trust says .. “It is questionable how the club can continue to operate in an environment where revenue is reducing, its ability to borrow money is removed and any playing assets with significant transfer value have all been sold.
While it is not revealed how much money the club may need to raise from these player sales, the club now finds itself in a situation where such high value playing assets are slowly diminishing.”
City now have no significant borrowing from any bank, but stated that their overdraft facility has been withdrawn. Another point of concern – after relegation, the payment due from the club to its own sponsor was higher than the sponsor had to pay the club.
There would appear to be major trouble brewing for this famous club. Is it a case of watching this space for a massive ‘need to raise more money explosion’ or will they make a ‘slow but sure’ go of it?