Birmingham City FC finally under new ownership

THE long-running saga over the ownership of Birmingham City FC has finally been resolved with the transfer of the business to a new Hong Kong-based company.

The St. Andrew’s club becomes the fourth in the West Midlands to undergo a change of ownership this year following Aston Villa, Wolverhampton Wanderers and West Bromwich Albion.

Responsibility for all four clubs now rests with concerns based in China.

The ownership of Birmingham City has been transferred to a business called Trillion Trophy Asia, ending one of the most complex ownership wrangles in footballing history.

The problems revolved around the financial entanglements of former owner Carson Yeung.

Yeung is currently languishing in a Hong Kong jail cell where he is serving out the remainder of a six-year term after being convicted on money laundering charges.

However, such was his reluctance to relinquish control of the business, Birmingham International Holdings, that he even tried to exert influence over the club from his prison cell, getting his supporters to challenge receivers over the sale process in the hope he could retain the business.

This effectively ended when a complicated share trade was completed, however, anyone hoping the Yeung would vanish completely will be disappointed as ne and his interested parties will retain a stake in the new business of around 3.5%.

However, receivers from Ernst & Young have said any influence he will be able to exert will be minimal.

Following the completion of the deal, the receivers, who have been administering the affairs of the BIH operation for the past two years have stepped down.

A new board, headed by Mr Zhao Wenqing – who has been appointed an executive director, the chairman of the board and the CEO of the new company – has been formulated.

Losses at BIH have mounted over the last three years, resulting in the club has struggling to come to terms with its financial difficulties.

Nevertheless, it has retained its Championship status and is currently higher in the league than both the better financed Aston Villa and Wolves.

Supporters will now be keen to see whether new funds will be injected into the playing staff in order to allow manager Gary Rowett to strengthen his squad.

Despite the precarious nature of the club’s finances, fans will be reassured by the comments of the receivers in handing over the business.

The receivers are of the opinion that the group will have sufficient working capital to meet its financial obligations for at least 12 months.

For their part, the new directors said that after “after due and careful enquiry, (they were) of the opinion that in the absence of unforeseeable circumstances and after taking into account the financial resources available to the group including internally generated funds and the available banking facilities, following completion of the proposed restructuring, the group will have sufficient working capital for its present requirements for at least the next 12 months”.

Shares in the club have also resumed trading on the Hong Kong Stock Exchange.