Birmingham City have moved to reassure the club’s fans that any financial concerns at St Andrew’s will not affect the side.
“There are no problems with the day-to-day running of the business,” said a spokesman. “The board are looking to raise capital to invest into the business.”
There are reports that City may not be able to compete in Europe after winning the Carling Cup unless they can convince the Premier League, UEFA and the Football Association their financial future is secure.
A statement by Birmingham International Holdings – the club’s parent company – to the Hong Kong stock exchange revealed Birmingham City and other Hong Kong-based businesses had total debts in excess of £29m.
It also emerged last week that owner, Carson Yeung, has put some of his own properties up as collateral for a multi-million pound loan. This would be used to “provide sufficient financial resources” to allow the business to continue “without significant curtailment of its operation”.
City need to obtain a UEFA licence to be able to take their place in the Europa League and this will depend on satisfying criteria about their finances.
Yeung took an initial 29.9% stake in Birmingham City three years ago before buying the club outright from David Gold and David Sullivan for £81m during the early part of the 2009-2010 season.