Blues release accounts as £58m injection is promised by new owners

Birmingham City FC continues to operate with financial losses despite experiencing a slight uptick in revenue within the Championship.

The club’s new owners have said they will inject £58m into Blues by the beginning of next year due to ongoing financial challenges.

It marks the conclusion of the club’s previous ownership structure before the investment in July by US investor Knighthead Capital Management, followed by a share deal involving NFL star Tom Brady.

In its financial report, Birmingham City revealed a pre-tax loss of £25.3m for the period ending on June 30, 2023, an increase of £304k compared to the previous year.

Despite the club experiencing growth in commercial and broadcasting income streams, leading to a rise in revenue from £18.1m to £19.7m year-on-year, the pre-tax losses continued to climb.

Recent accounts also reveal a decrease in matchday and season ticket revenues from £4.1m to £3.7m, while broadcasting income increased from £8.3m to £9m.

Additional commercial income, including sponsorship, corporate hospitality, and merchandise, increased by £1.4m, reaching £6.9m.

The average attendance stood at 16,756, representing an uptick from the preceding season.

However, ticket sales were impacted due to ongoing repairs necessitating the closure of sections within the Tilton Road and Kop stands.

In the annual report’s future projections, it was stated that Birmingham City FC would need about £58 million more from Knighthead Capital to keep running until February 2025