Jimzk5 Posted January 8, 2013 Share Posted January 8, 2013 http://www.birminghammail.co.uk/sport/football/football-news/birmingham-city-paid-more-to-xtep-430912 Link to comment Share on other sites More sharing options...
MMFy Posted January 8, 2013 Share Posted January 8, 2013 ]Birmingham City made £15m profit - but cuts will continue Club is in the black - but turnover dropped from £61m in the Premiership to £39m and parent company is mired in problems St Andrew's stadium - Birmingham City's football ground Blues’ cost-cutting will continue – despite the club posting a profit of more than £15 million in newly-published accounts. The St Andrew’s outfit ended the year to June 30, 2012 £15.7 million in the black, thanks to the sale of a string of players and Premier League “parachute” payments made to relegated teams. But the directors’ report, accompanying the accounts, made it clear the club’s period of austerity would continue with parent company Birmingham International Holdings Ltd still mired in problems. “Due to the number of player sales and the support of Premier League parachute payments, this current year shows a substantial profit and positive cashflow,” the document said. “The directors intend to continue to seek cost reductions to help ensure the financial viability of the club.” Acting chairman Peter Pannu made similar noises last month when he admitted he was prepared to sell star asset, goalkeeper Jack Butland, during this month’s transfer window to keep Blues afloat. Players including Roger Johnson, Scott Dann, Craig Gardner, Cameron Jerome, Barry Ferguson, Liam Ridgewell and Jean Beausejour all left Blues during the year to last June. But the balance sheet revealed turnover dropped from £61 million in the 2010/11 Premier League campaign to £39 million. And the club made an operating loss of just under £4 million when transfer deals were discounted. Staff payments, including players’ wages, almost halved to just over £25 million from more than £45 million the previous year. But boardroom fees rocketed from £80,247 to £687,611. Match receipts increased to £9.2 million from £9.1 million, but broadcasting revenue dropped to £21 million from almost £44.5 million. Other commercial income also rose slightly to £8.7 million. The directors’ report confirmed club bankers had withdrawn an overdraft facility but BIHL had supported the club with loans of £7 million through major shareholder Carson Yeung, who is facing court over allegations of financial irregularities in Hong Kong. And it said the directors had not received any information that payments made to Blues by Yeung “were sourced from money laundered funds”. Football finance expert Peter Knowles said the figures showed few surprises. “It’s what we were expecting,” he said. Match receipts were up, yet attendances are down by 10%? I know they are playing an extra 4 games a season in that league, but surely they would have also had to drop ticket prices when they were relegated? I smell a rat... 1 Link to comment Share on other sites More sharing options...
Jimzk5 Posted January 8, 2013 Share Posted January 8, 2013 Match receipts were up, yet attendances are down by 10%? I know they are playing an extra 4 games a season in that league, but surely they would have also had to drop ticket prices when they were relegated? I smell a rat... They played a fair few in the Europa league Link to comment Share on other sites More sharing options...
TrentVilla Posted January 8, 2013 Moderator Share Posted January 8, 2013 Despite the headline figure of the £15m profit those accounts are far from healthy reading. Without the player sales they would have posted a loss of £19m and next season their PL parachute payment will drop from £16m to £8m which based on their current P&L figures excluding transfers would see them post a loss next season of circa £27m. The parent company is in trouble so can't fund them so that means that to stop them getting into the territory of a £20+ loss next year they either need to increase commercial revenue or sell more players. You can only plug the whole in your finances by selling players for so long before you either pay the price on the pitch or your run out of stars to sell. I admit these results (if you entirely believe them lets not forget the last auditors quit because they didn't think they were being given all in information required) are better than I'd imagined they would be but they are far from being healthy. Oh and just to add, according to Pannu no money has been paid back to Carson for the loans he has made to the club which are still outstanding so these accounts aren't quite the full picture. Link to comment Share on other sites More sharing options...
MMFy Posted January 9, 2013 Share Posted January 9, 2013 Trent, do you know how much they owe in loans? Is it £7m to Carson Yeung and something like £20m to BIHL? I am not quoting these figures as correct as I don't know if they are or not, but debts like this would probably make the club worthless. Link to comment Share on other sites More sharing options...
MMFy Posted January 9, 2013 Share Posted January 9, 2013 Market experts value BIHL's 96% stake in Birmingham at around £15 million, but Yeung is owed £13.7 million for a loan and a further £7.8 million is owed to BIHL. horse Club worth £16m, with £21.5m of debts and a projected £27m loss for the upcoming year. That's got to be close to insolvency, surely? Link to comment Share on other sites More sharing options...
flamingsombrero Posted January 9, 2013 Share Posted January 9, 2013 Isn't the Sty tied up in some weird deal with HSBC too? I'm sure I remember hearing about that a while back. Link to comment Share on other sites More sharing options...
turnbull Posted January 9, 2013 Share Posted January 9, 2013 Nice to see they've spent a few bob on the ground though. Link to comment Share on other sites More sharing options...
HolteEndRob Posted January 9, 2013 Share Posted January 9, 2013 Isn't the Sty tied up in some weird deal with HSBC too? I'm sure I remember hearing about that a while back. Yeah, I remember reading something along those lines last year sometime in the Birmingham Mail newspaper. Link to comment Share on other sites More sharing options...
Ghost Posted January 10, 2013 Share Posted January 10, 2013 Link to comment Share on other sites More sharing options...
TrentVilla Posted January 10, 2013 Moderator Share Posted January 10, 2013 horse Club worth £16m, with £21.5m of debts and a projected £27m loss for the upcoming year. That's got to be close to insolvency, surely? I believe the debt to Yeung is closer to £16m plus the loan owed to HSBC. As for the ground http://www.birminghammail.co.uk/news/local-news/birmingham-city-sign-secret-deal-180745 Link to comment Share on other sites More sharing options...
TrentVilla Posted January 10, 2013 Moderator Share Posted January 10, 2013 Reading a little more on this it appears they owe Yeung £14m and £7m to the holding company BIHL registered in the Cayman Islands obviously but they no longer owe HSBC or any other bank. One other intereting thing the accounts reveal is the detial of their former sponsorship deal with Xtep, a Hong Kong based company. The deal was done by ex Director Vico Hui who resigned in July. The 'sponsorship' deal included Birmingham having to pay Xtep for "promotion of BCFC/BIHL in China". Once they were relegated the payment due from Birmingham to their "sponsor" was higher than the sponsor was paying the club!!!!!!!!! Link to comment Share on other sites More sharing options...
coda Posted January 11, 2013 Share Posted January 11, 2013 Peter Pannu paid out £430,000 in 'pocket expenses' to Hong Kong staff Sounds legit. He should be an MP. Link to comment Share on other sites More sharing options...
Jarpie Posted January 11, 2013 Share Posted January 11, 2013 Nikola Zigic tends to get linked with a move away from Birmingham City periodically and the striker's agent claims the Serbian has turned down an offer from Villarreal. Zigic is waiting for a 'better opportunity' than Villarreal but is also not planning to leave Birmingham in January after attracting interest from several clubs. From Skysports. He's really siphoning the club with his salary Link to comment Share on other sites More sharing options...
TrentVilla Posted January 11, 2013 Moderator Share Posted January 11, 2013 Get your laughing gear around this The 32-year-old's representative Milan Calasan also claims several other clubs have shown an interest, but that Zigic is in no hurry to quit St Andrew's. "The Spanish club offered 50 per cent of Zigic's salary, but they want Birmingham City to pay the other half of his contract," Calasan told Sport. "But Nikola is staying, he is not moving to Villarreal. He is not interested in moving to the Segunda Division, he is now waiting for a better opportunity. "And there is something else - his kids are in school in England, that's why he is not so keen on moving in January. And he also loves England, more than he loved Spain. "He is happy with the money he gets, he loves life in the UK. He has a contract as though he would be playing for Man United. "Birmingham City could buy five new players if he were to move but, as I said, he is not really keen on moving right now. http://www1.skysport...from-Villarreal I believe he has another season on the contract beyond this one. Shame Link to comment Share on other sites More sharing options...
CarewsEyebrowDesigner Posted January 11, 2013 Share Posted January 11, 2013 We should name a stand after Zigic. Link to comment Share on other sites More sharing options...
Jimzk5 Posted January 12, 2013 Share Posted January 12, 2013 Is say a more pressing concern is the fact peter pannu said he was only paid £100,000 but the acounts show he pocketed nearly 700k from then in a year. Link to comment Share on other sites More sharing options...
Demitri_C Posted January 12, 2013 Share Posted January 12, 2013 I nice parting gift from tehir best ever manager alex mclose our worst ever manager Link to comment Share on other sites More sharing options...
TrentVilla Posted January 12, 2013 Moderator Share Posted January 12, 2013 Anyone else enjoy the mix up on Soccer Saturday today? Jeff Stelling announced the last minute Blues goal to make it 2-0 proclaiming Clark would be a happy man on his return to H'field. A couple of minutes later after a break it turns out the Press Association had made a mistake and it was 1-1 Would love to have seen a few noses get that piece of news. Link to comment Share on other sites More sharing options...
TrentVilla Posted January 13, 2013 Moderator Share Posted January 13, 2013 Just stumbled across the Blues Trust, a Small Heath fans group set up to save their club from the hands of Pannu and Yeung. Just wait until you see the logo!!! Anyway, while laughing at their site I couldn't help but notice that they have a vacancy and that they have an online application form...... Wouldn't it be terrible if they got a few bogus applications, I feel a little competition brewing Link to comment Share on other sites More sharing options...
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