Birmingham City latest accounts released - here’s what they show amid takeover latest

It’s been another difficult season on and off the pitch for Birmingham City.

In February, the club were charged by the EFL for allegedly breaching a number of the League’s regulations following an investigation. The charges relate to the ongoing ownership situation, specifically to the proposed acquisition of Blues.

The club itself and individuals have been charged, meaning the club could face a points deduction for the second time under the club’s current owners BSHL. Blues fans have been calling for a change of ownership for more than a year now, holding numerous protests before and during home matches over the last 12 months.

So it comes as no surprise that the club’s latest 2023 financial accounts don’t make good reading.

What do the accounts show?

The accounts are for the year ending June 30, 2022 and show that Birmingham City has recorded a pre-tax loss of £24.8 million - primarily as a result of player trading in the prior year.

The accounts show that the club recorded a loss of almost £25 million fro July 1, 2021 to Jun 30. This is a huge increase of more than £19 million from the previos year, when the club recorded a loss of £5.5 million.

The club’s revenue did increase to £17.5 million compared to £13 million the year previous. Although the club’s wage bill increased to £31.1 million, up slightly from £30.95 million from the year before.

Takeover latest

Paul Richardson and Maxi Lopez called off their attempted takeover of the club in February after talks fell through.

But the club’s chairman Wenqing Zhao confirmed earlier this month (March) that a ‘third party’ have initiated talks over a proposed investment into the stadium and into the club.

“And although he said the club has been supporting the parties throughout the due diligence process, he said he won’t be placing ‘any time frames on such a process’.

The chairman was responding to supporters who sent a letter to the club calling on the owners Birmingham Sports Holdings Limited (BSHL) to put the club up for sale.

“The club have been in talks with a group led by the former Motorola and Microsoft executive Jeremy Dale over investment into the club. That’s according to The Athletic, which has claimed that City are in talks with a group led by Dale.

Dale and Keith Pelley are now reportedly leading a consortium hoping to get a deal over the line for investment into the club.

Dale has also reportedly been at the club’s training ground recently with members of his consortium showing prospective investors around.

Discussing the EFL charge and proposed investment into the club, Zhao issued a statement to the BCFC.com website confirming that talks over a deal for Blues is underway with a third party - but he failed to outline any timeframe for when these discussions could conclude.

West Midlands mayor Andy Street also revealed on social media that he spoke with the English Football League (EFL) on Monday (March 20) about the club’s ongoing ownership issues.

He said he believed that the club needed new owners to be able to move forward. Posting on his Twitter account, he wrote: “Another very important call with the EFL this afternoon to discuss the ongoing situation at BCFC. It was enlightening to hear their latest thinking, but it remains abundantly clear that new owners are needed. It is frustrating we’ve not yet been able to help make that happen.”