Blues warn McLeish over transfer spending

Published Add your comment

Birmingham have announced pre-tax losses of £20.5million and warned manager Alex McLeish of the "pitfalls" of the transfer market.

The losses are for the financial year ending August 31, 2009, compared with the midlands club making a pre-tax profit of £4.5 million for the previous 12 months. Blues experienced the big financial loss after being relegated from the Barclays Premier League at the end of the 2007-2008 campaign although they returned to the top flight at the first attempt last May under Alex McLeish.

And the club's audited financial statement blames the loss on "the decision taken by the previous members of the board to retain most of their playing staff from the previous Premier League season".

Previous owners David Sullivan and David Gold quit the club earlier this season and were replaced by Hong Kong businessman Carson Yeung.

Blues splashed out £27.1 million in wages in their successful bid to return to English football's elite. And, during the promotion season, they also saw turnover from match receipts, broadcasting and commercial revenue drop by £22million.

The statement also hints that McLeish may have more limited funds to spend on new players in the summer.

It reads: "The acquisition of players and their related payroll costs are deemed the core activity risk and, whilst assisting the manager in improving the playing squad, the board is mindful of the pitfalls that are inherent in this area of the business.

"The aim, therefore, is to manage the costs whilst being as competitive as possible with the club's financial restraints."

Copyright (c) PA Sport 2009, All Rights Reserved.

Do YOU want to write for GiveMeSport? Get started today by signing-up and submitting an article HERE:

Premier League

Article Comments

Report author of article

Please let us know if you believe this article is in violation of our editorial policy, please only report articles for one of the following reasons.

Report author


This article has been written by a member of the GiveMeSport Writing Academy and does not represent the views of or SportsNewMedia. The views and opinions expressed are solely that of the author credited at the top of this article. and SportsNewMedia do not take any responsibility for the content of its contributors.

Want more content like this?

Like our GiveMeSport Facebook Page and you will get this directly to you.

Already Subscribed to Facebook, don't ask me again

Follow GiveMeSport on Twitter and you will get this directly to you.

Already Following, don't ask me again

Like our GiveMeSport Page and you will get this directly to you.

Already Subscribed to G+, don't ask me again