Multimillion-pound losses mount up at Birmingham City
Birmingham City FC has continued to lose millions of pounds every month despite enjoying its best season on the pitch since 2012.
Its owner, Birmingham Sports Holdings, said “the results of the club were still far behind expectation”.
New financial figures show Birmingham Sports Holdings made pre-tax losses of £16.6m (HK$173.1m) in the six months to December 2018.
It was an improvement of around £2m on a year earlier but shows the scale of the task behind the scenes.
The Championship club is currently in eighth position, three points outside the play-off places, which offer a route to the Premier League.
In a statement to the Hong Kong Stock Exchange, Birmingham Sports Holdings said: “Although the club’s on-the-field performance had been improved as compared to the previous season and the management had been keen for achieving better operating results, the club was still incurring substantial loss and required continual support by the company.”
Finance costs on the club’s borrowings have jumped up 70% to £1.3m (HK$14.0m).
The club’s income increased slightly, up 4% to £11.2m (HK$116.4m) – although the majority of this increase came from broadcasting revenues.
Birmingham City’s losses may also have an impact on the league table. In the coming weeks it faces a Financial Fair Play hearing for exceeding losses of £39m over a three-year period that could result in a points deduction alongside a fine.
