Birmingham City acting chairman Peter Pannu tried to reassure Blues fans about the financial position of the club in the From the Boardroom section of the programme for the play-off game against Blackpool. He insisted that the club was not heading for bankruptcy.
Birmingham City acting chairman Peter Pannu tried to reassure Blues fans about the financial position of the club in the From the Boardroom section of the programme for the play-off game against Blackpool. He insisted that the club was not heading for bankruptcy.
When the delayed accounts became available they would not show ‘a very rosy picture but again it is not as bad as some people seem to portray it, based on rumours. What is the truth is that not only were we short of the funds spent on players and wages whilst we were in the Premier League which Carson [Yeung] promised to cover but which did not quite materialise due to his predicament and the freezing of his funds, which I am sure he regrets’.
Pannu is not on the board of the parent company, but has been urging them to give ‘serious consideration’ to a takeover. Pannu admits he does not know the ‘finer details’ but states that an investor has been identified and further annoucements will be made in Hong Kong once the accounts have been finalised. It seems more than likely that such an investor would be from China or Hong Kong.
Fans at other clubs have been disappointed by investors, both in terms of the funds they actually turn out to have at their disposal and their knowledge and understanding of football. While the ‘fit and proper person’ should take account of this, there is a debate about whether it is broad enough in its scope.
Whilst Blues fans will be disappointed with being knocked out of the play offs at the semi final stage, actually to get that far was quite an achievement given the club’s financial problems. Those running it on a day-to-day basis faced real challenges in keeping it going.
While the information available is relatively limited, I do not think that the club is in immediate danger of entering administration and there is a glimmer of hope on the horizon.