Birmingham City fans left in limbo as chairman Wenqing Zhao issues takeover update

Birmingham City chairman Wenqing Zhao has issued an update to fans about the proposed takeover of the club.

Zhao has confirmed 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 letter came after the club were charged by the EFL in February 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. Following the EFL charge last month, Birmingham City supporters sent the letter to the club calling on the owners to once again 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 was also reportedly at the club’s training ground recently with members of his consortium.

What has Zhao said?

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.

He said: “The Club intends to continue the dialogue with supporter groups to determine a proposal all parties are happy with

“The letter (from supporters) also requested an exit strategy and associated timelines. For legal reasons I am restricted in what I can share in relation to the future plans of the parent company.

“However, as is in the open forum, it was confirmed that a shareholder and a third party have initiated talks over a proposed investment deal for both St. Andrew’s Stadium and for an initial 21.64% shareholding in the Club.

“The Club has been supporting the parties throughout the due diligence process and will provide an update to supporters when permitted. It would, however, be wrong to place any time frames on such a process today.

“In accordance with the Club statement released on Monday 20 February, I acknowledge the receipt of charges from the EFL and while further comment cannot be made at this time, I can confirm that no club official has been charged in relation to this matter.”