Football

Blues seek cash boost

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Birmingham owner Carson Yeung will put up personal property assets in an effort to bring in new investment to keep the club solvent.

A statement by Birmingham International Holdings to the Hong Kong Stock Exchange revealed the group had liabilities exceeding its assets by approximately £27million. That is a situation which BIH said "indicates the existence of a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern".

However a club spokesman insisted there are "no problems" with day-to-day operations, and Yeung, the major shareholder in BIH, will put Hong Kong property up as collateral for an £11.8million loan.


 

BIH also intend to bring in working capital amounting to £24.4million, of which £7.1million will come from a financial institute and £17.3million from making new shares available in the company.

According to BIH, Yeung's funds will "provide sufficient financial resources" to allow the business to continue "without significant curtailment of its operation".

Birmingham manager Alex McLeish has performed wonders at St Andrew's in guiding the team last season to their highest top-flight finish - ninth place - and last weekend's Carling Cup final triumph over Arsenal.

The statement released by BIH reveals that McLeish and his squad will be entitled to bonuses which have to be paid.

It read: "There is a player pool bonus for Premier League retention based upon the position the club finishes at the end of the 2011 season. In addition to this, some players and football management staff have individual bonuses due upon Premier League retention.

"Also, the team manager would be due a bonus should the team finish in a certain position or above together with bonuses due upon success in cup competitions."

A Birmingham spokesman said: "There are no problems with the day-to-day running of the club. Birmingham International Holdings is seeking to raise capital to invest into the business."

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

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Topics:
Football
League Cup
Premier League
Birmingham

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