Birmingham City's place in Europe threatened by financial concerns

BeanFlicker

Stolen from another forum and following on from PaullyD thread for 'The State Of Modern Day Football For Supporters Of The Smaller Clubs'

This goes & proves the pure ****e the smaller clubs have to endure & therefor suffering, just so the bigger teams can be in European football

Birmingham City face the threat of being denied their licence to play in Europe next season if they cannot convince the Premier League and the Football Association that their finances are not a major cause for concern.

The Premier League is set to hold discussions with the Birmingham board this month before deciding in conjunction with the FA whether they should be granted a Uefa licence and allowed to play in the Europa League, for which they qualified after winning the Carling Cup.

more:http://www.guardian.co.uk/football/2011/apr/15/birmingham-city-europe-fa-premier-league

Kiwi_knock

Their place will only be under threat if they get relegated, if they stay up they should have the finances to continue. The Premier League is only worried with the amount of people who have invested in Birmingham but who remain anonymous.

All the problems should be solved if Birmingham stay up.

Hootanany

More............

http://www.birminghammail.net/birmingham-s...97319-28527066/

Carson Yeung has increased his stake in Birmingham City to just shy of 25 per cent.

Yeung bought 315,000,000 shares in parent company Birmingham International Holdings Limited (BIHL), representing 8.6 per cent, from an ‘independent third party’.

He remains the largest individual shareholder in BIHL, while Liu Xingcheng is listed with 12.4 per cent of the company.

Vico Hui, Blues chairman, has 4.5 per cent through his firm Premier Rise Investments Limited. Hui is BIHL’s chief executive officer.


Yeung last month loaned Blues £4 million to help see them through beyond the season’s end and meet a variety of liabilities.

And around £7 million was raised from an underwritten share issue, which diluted Yeung’s stake - which he has now beefed up again due to this latest stock market move.

The share issue was arranged as BIHL announced that they were seeking £24.5 million of new capital to keep the business going.

Recent accounts showed that BIHL’s liabilities exceeded assets by £27.5 million and this caused concern at the Premier League.

Peter Pannu, the club’s vice-chairman executive and finance, insisted that Blues were not in meltdown and their place in next season’s Europa League was not under threat.

Blues qualified for Europe by winning the Carling Cup, but UEFA’s licensing rules dictate that clubs must be in sound financial shape to play in their tournaments.
Blues have applied for their Europa League licence and have to show proof of their financial health and revenue streams by the summer.

Yeung and BIHL have been busying themselves in the past couple of months striking commercial agreements.

In Dafeng, a growing port city on China’s east coast, a sports related tourism facility has been touted by BIHL, with the project taking three to five years to complete.

Yeung and BIHL also last week entertained officials from Ordos, a city in the Inner Mongolia province, on his yacht in Hong Kong with a view to kickstarting its growth and development.

Meanwhile, Hong Kong billionaire businesswoman Pollyanna Chu, whose Kingston Financial Group underwrote BIHL’s share issue, has said she would be happy to help Yeung, her friend of more than 10 years, if Blues team needed funding.

Chu, a major player in the Macau gaming industry, isn’t, however, a ‘mystery backer’ many fans seem to believe is behind and driving Yeung’s Blues ownership.

She now has no shareholding in BIHL after completing broker's duties for the placing. She also provided the bridging loan for

Yeung to complete the £81.5 million takeover of Blues.

BIHL owns 96 per cent of Birmingham City plc, which in turn owns Birmingham City Football Club.




If we are denied then so must Man United be denied a licence as their debts are far worse

So 6th may get into Europe then ? Lol

Paully D

Now there's a surprise :rolleyes:

It wouldn't be good for the Premier League brand if Liverpool didn't qualify for Europe so unfortunately I wouldn't be at all surprised to see it happen.

dreamers75

Hootanany wrote: »

If we are denied then so must Man United be denied a licence as their debts are far worse

They have clear repayments going on "servicable debt", problem with Brum is noone knows who owns them and how much they in debt.

Similiar to portsmouth, UEFA have this spot on.

Hootanany

Pompey had 116m worth of debt when they were refused a uefa licence .. whereas we (in comparison) only have 24m worth of debts.

dreamers75

Hootanany wrote: »

Pompey had 116m worth of debt when they were refused a uefa licence .. whereas we (in comparison) only have 24m worth of debts.

To who tho? And whats the plan to repay this debts.

From what i can see owner is going bugger off if they go down, as for ports the russian lad made millions selling players then somehow gets the club into 116m debt. Fratton fred on here would have the actual info but its shocking.

UEFA right to question this.

Hootanany

He only bought us and we went down so

HalloweenJack

Nothing new here. Mallorca were denied their spot in the UEFA Cup this season because of similar concerns from UEFA.

Kiwi_knock

Birmingham City have been granted a Uefa License and will therefore be definitely competing in the Europa League.

http://www.bcfc.com/page/News/NewsDetail/0,,10412~2354232,00.html

ShamoBuc

glad to see that happening and the 'nonsense' can stop now. Their fans deserve to look forward to it.

Hootanany

Yipee

Mushy

Good, glad they got the licence. Hope Stoke join them in it now.

The Volt

Mushy wrote: »

Good, glad they got the licence. Hope Stoke join them in it now.

Stoke do already. Barring some crazy scenario of Man City finishing lower than 5th + winning the cup.

MisterAnarchy

Mushy wrote: »

Good, glad they got the licence. Hope Stoke join them in it now.

European audiences are in for a treat ,they will be treated to some exhilirating samba football .