Birmingham City FC ownership: MP calls for independent football regulator amid uncertainty

Birmingham’s Ladywood MP Shabana Mahmood has urged the UK government to press ahead with plans for an independent regulator in English football - highlighting the ownership issues which are currently affecting Birmingham City Football Club.

Ms Mahmood appeared in the House of Commons on Monday night (7 November), leading a debate on the governance and financial sustainability of football clubs in England.

The Government said it would establish an independent regulator in April, and twenty-nine clubs have now written to the Government urging it to now implement the plans.

The regulator would have power to sanction clubs in English football who break financial and other rules, and a new owners’ test will be introduced and legislation would give fans more say in the running of the game.

Ms Mahmood highlighted the way Birmingham City has been run in recent years during her speech, saying: “It is steeped in history and with a heritage that Brummies across the city are proud of, but for years now, Blues fans have watched with devastation as financial and professional mismanagement has driven their beloved club to the brink.”

Despite Blues’ upturn in form under new manager John Eustace this season, uncertainty still remains over the club’s ownership.

Prospective new owners Maxi Lopez and Paul Richardson agreed a deal with the current owners Birmingham Sports Holdings Ltd (BSHL).

The pair paid a £1.5million deposit in July for the club’s largest individual shareholder Vong Pech. The club say a deal was agreed which is now subject to the EFL’s approval process, although the deal hasn’t progressed in recent months.

Fans are annoyed that the deal hasn’t moved forward in recent weeks. The supporters have been frustrated with the club’s current owners BSHL, and held marches before home fixtures last season demanding change at the top of the club.

Why are fans unhappy with BSHL?

Under the ownership of Birmingham Sports Holdings, the club were found to have breached profitability and sustainability rules in 2019 after incurring losses of nearly £48.8m in three years, and were subsequently docked nine points.

They avoided a second points deduction in 2020 despite losing an appeal to the EFL over a misconduct charge.

The club have also been forced to close the lower sections of the Kop and Tilton Road End at St Andrew’s due to structural issues with part of the stadium remaining closed this season.

MP calls for football regulator

During the debate in the House of Commons, Ms Mahmood highlighted the issues that are afecting Birmingham City and called for an independent regulator to be introduced into football.

She said:“I am desperate to make sure that Birmingham City Football Club can be rescued from their current predicament and put on a sustainable footing.

“It is one of the oldest football clubs in the country. It was founded in 1875 in Small Heath; it acted as a rifle range for training soldiers in WW1 and like much of Small Heath was bombed during WW2.

“It is steeped in history and with a heritage that Brummies across the city are proud of, but for years now, Blues fans have watched with devastation as financial and professional mismanagement has driven their beloved club to the brink.

“But the issues at Blues are not unique – they are happening in stadiums and club houses across the country. Fantastic clubs face destruction unless we see decisive action and regulatory overhaul from the government – exactly as we were promised earlier this year.

“The long-term future of English football can only be secured if the Government implements the recommendations of the FLR in full; they have long promised a White Paper which would pave the way for legislation to create the Independent Regulator of English Football.”