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Second points deduction threat for Blues

Birmingham City could be at risk of another points deduction. The club have issued the following brief statement: 'The Club confirms that it has been charged with a breach of EFL Regulations in relation to a business plan imposed upon us in the 2018/19 season. The Club denies the charge and we await the outcome of ongoing disciplinary proceedings. We shall be making no further comment at this time.'

Further information about the underlying issues is provided here: Financial controls

The club are expected to publish their 2018/19 accounts later this week. They have been filed at Companies House, but there is usually a five day time lag. They are owned by a sports holding company in Hong Kong.

Birmingham Live review the unhappy situation here: City set to reveal vital figures

Kieran Maguire of the PriceofFootball reports: 'Birmingham City have operating loss of £29.5m for 2019 but reduce this by selling property to the owners for £23m and booking a profit of £17m on the deal.'

'Over the last decade Birmingham's total income, including Premier League and parachute payments, was £297 million, player costs (wages and amortisation) £325 million. Birmingham total losses over the years £79 million and club owes £97 million to its owners in Hong Kong.'

'Birmingham did not receive any cash from sale of property, instead it has an IOU from another company controlled by the club owners for £22.76 million.'

'Birmingham income up £4m on the back of unusually high growth of commercial income. Likely to relate to naming rights for stadium and training ground but club using loophole in accounting rules to avoid disclosing the amount of sponsorship.'

'Birmingham wage bill down 14% to £32.8 million, but still paying out £140 in wages for every £100 of income. When add in transfer fee amortisation this becomes £173 in player costs per £100 of income.'

Birmingham player trading made up of purchases £7.4 million and sales of £7.6 million.

Maguire states: 'By Championship standards Birmingham's losses last season in top half but didn't make the playoffs. Over the last decade Birmingham's total income, including Premier League and parachute payments, was £297million, player costs (wages and amortisation) £325 million.'

As a parting shot he notes, 'Birmingham wrote off £3.1 million in 2019 from a signing who was a bit bobbins. Blues fans can suggest who he is likely to be.'

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