Writer: Chris Handy
Date:Wednesday December 18 2013
Birmingham are in the middle of a cash crisis as the directors are reportedly looking at ways to keep the club afloat.
It is no secret that the club is in financial difficulty, although national media have not seemed to largely grasp the scale of it.
Last season the club lost £9 million. This season the club plan to borrow a further £5 million.
Borrowing money would be based on a future ability to earn it and pay it back. I just do not feel comfortable with that idea, you should work with what you have, not with speculations. I would rather the club cut hugely back than continue to borrow.
A loan however may be the only way to help the club finish the season and stay afloat long enough to remain in the league. If that is the case then I will accept a loan.
The clubs revenues have fallen to £24.2 million from £39.08 million.
The reported losses are a contrast from the year before, where the club reported a profit of £15 million due to player sales.
Well everyone knew the time would come where the players worth enough money would run out. Over the years the club had slowly built a squad of players with respectable reputations and along with that, respectable values.
I maintain to this day we were unbelievably unfortunate to go down in the end.
The accounts have also stipulated that although they plan to borrow against the clubs future income, they have insufficient evidence of that income.
In other words, the auditors do not believe the club had the future potential to make the money back.
Therefore the club may not get the loan, if it does though, it may not be able to pay it back. That would be a problem on a whole knew scale.
Birmingham International Holdings Limited are requesting that they be allowed to resume trading on the Hong Kong Stock Exchange in order for them to raise capital.
If this is allowed then the club will gain an interest free loan, much like before. Owing the money to the parent club is what some might call, the lesser of two evils.
BIHL has also appointed three new directors to the company. It is speculated they are there to help tempt investors and raise capital.
All in all a grim situation at present, I'm sure some developments will follow shortly.
Date:Wednesday December 18 2013
Stats: Blues v Queens Park Rangers (Saturday March 8 2014)
Saturday's Referee: Graham Scott (Friday March 7 2014)
Blues Take On QPR. (Friday March 7 2014)
Yeung Jailed For Six Years In Hong Kong (Friday March 7 2014)
Carson Yeung Update (Thursday March 6 2014)
McDermott To Keep Eye On Birmingham. (Thursday March 6 2014)
QPR Hopeful Morrison Will Be Ready For Blues. (Thursday March 6 2014)
Football League Will Not Investigate Birmingham (Monday March 3 2014)
David Murphy Retires From Football (Monday March 3 2014)
Carson Yeung Guilty of Money Laundering Charges (Monday March 3 2014)
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