Pannu’s rant mires Blues sale in further controversy

SHARES in Birmingham City’s Chinese owner, Birmingham International Holdings, remain suspended today after an apparent offer for the business.

Former Swindon Town chairman Jeremy Wray is believed to have made a formal offer to acquire the Championship club with promises to pump £25m a year into the business. He is thought to be partnered with former Newcastle United director Steve Hayward.

BIH has said in an announcement to the Hong Kong Stock Exchange that share trading remains suspended pending a clarification announcement by the board.

Nothing is clear when dealing with Birmingham City’s finances and the latest saga to grip the club is no different.

Wray is understood to have said the offer has been submitted on a formal basis but the board of BIH is saying nothing by way of clarification.

Wray has also stated publically that internal wrangling within the club could scupper the deal before it has even been properly considered.

In an attempt to speed up the process, Wray has been quoted in the media as saying that unless £5m is pumped into the club in January the club could face dire consequences and become considerably devalued as a result.

The pivotal role being played by BIH chief executive and former Blues acting chairman Peter Pannu is thought to be significant but his latest moves suggest the Machiavellian saga has yet to run its course.

In an online clash on a supporter’s website Pannu said the club could run out of money within weeks because of a possible £1.8m tax demand.

The rant has prompted intervention by the Football League which has demanded the football club explain Pannu’s actions.

To distance itself from the situation the club issued a statement saying it was “shocked and disappointed” at the allegations.

“It would be inappropriate for the club to comment on specifics, however the club wishes to allay any fears that may now arise on the basis of the allegation there will be no funds beyond January/February 2015 – this is categorically refuted,” it said.

“Whilst the club does not wish to comment on the specifics of its tax affairs as this, under normal business protocol, is a matter for it and HMRC, the corporation tax returns will be filed under due process and any tax due will be paid on time. The club’s tax affairs are, and should always be, confidential and supporters can be reassured that Birmingham City Football Club takes its responsibilities very seriously in this regard.”

It continued: “All involved at the club are wholly unimpressed and saddened by the unprofessional and ludicrous actions taken which seem intent on discrediting and damaging individuals and the club; this is entirely unnecessary – but particularly at a time when the team is performing very well under a new manager and our supporters are buoyant and enjoying some positive results.

“The board, management, players and staff remain fully committed to acting in the best interests of Birmingham City Football Club at all times.”

Regarding the sale of the club, it said the parent company would act responsibly on the matter and conduct affairs through the proper channels.