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Transfer embargo for Blues

Birmingham City have been placed under a transfer embargo for failing to comply with financial fair play rules: Transfer embargo

The ban relates to regulations on profitability and sustainability. The Football League have demonstrated their determination to enforce FFP rules with £42m of charges levied on QPR.

Like many Championship clubs who are treading the Financial Fair Play tightrope, Blues were initially placed under a 'soft' embargo at the end of last season. However, with the EFL not convinced Blues had heeded their warning, they were placed under full transfer embargo in early July and that prevents them from registering players. The news has only now been confirmed.

Under the rules clubs can lose £15m over three seasons, although owners can top this up to £39m if they put in £8m a season in the form of shares. Blues had pre-tax losses of £21.4m in 2 years to 2016/17. Some costs are disallowed for FFP purposes.

Kieran Maguire of the Price of Football has commented, 'After years of austerity Birmingham City went a bit giddy in 2016/17, signing players for nearly £12m which had a knock on effect of increasing the wage bill by 47 per cent. They then spent a further £10 million in the 2017 summer window. This would have another inflationary impact on wages and increase losses in 2017/18.'

Maguire added, 'This ties in with losses announced by Birmingham City's parent company in Hong Kong, which tripled from 2017 to 2018. All this points to a FFP breach by the time summer of 2018 arrived. Shame both the club and EFL have been so silent for so long on this.'

There is concern and mounting anger among fans about the lack of communication from the club's Chinese directors.

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