Birmingham City: Board rubbishes talk of "financial meltdown"

Aug 23 2010 by Colin Tattum, Birmingham Mail

BLUES today angrily insisted there was no financial “meltdown” at St Andrew’s.

And Peter Pannu stressed the club received “unlimited support” from Chinese tycoon Carson Yeung.

Pannu, Blues’ acting chairman, also pledged Alex McLeish would be backed in the market again before the transfer window closed.

Doubts about Yeung’s wherewithal and the financial strength of the club were cast after revelations in the published accounts of Birmingham International Holdings Ltd, Yeung’s firm and Blues’ parent company.

BIHL warned they could be at risk of collapse due to excessive liabilities of around £35 million.

The Premier League – under new rules designed to avoid another Portsmouth fiasco – have asked Yeung to give a written assurance that he will keep the club afloat this season with his own funds.

Pannu said Yeung would do just that, and provide more money for new players.

“The accounts are those of the holding company and has nothing to do with BCFC which, in the last year, had shown some profits,” Pannu told the Birmingham Mail.

“The level of negativity as portrayed in the account is the carrying forward of net debts and write off from previous years.

“The club is continually supported by Carson Yeung with his personal money where, by undertaking, there are no plans to call in and more will come in to buy players, where we see value and where the new players will enhance the squad.

“Football is an expensive hobby and will remain that way unless all Premier League owners come together and do something about the runaway player wages and instill some sort of financial discipline collectively.

“The EU Bosman ruling has also changed the goalposts as all the purchase price of a player is totally written off over the term of the contract on top of the paid wages.

“I may also take this opportunity to remind people, fans and the public, that they cannot have it both ways as on the one hand criticising accounts and on the other hand demanding more injection of funds to enhance the squad.

“There has to be a balance and we feel the club had struck that balance and the parent company’s accounts are nowhere near to the level of debts shown by some major Premier League clubs and some of the powerhouses in Spain and Europe.

“To suggest a crisis and a financial meltdown of BCFC is not only ludicrous but is a bit of a rumour-mongering exercise. The club is in good health and we have unlimited support from Carson Yeung.”