Birmingham City And Possible Administration   Leave a comment


St Andrews

Birmingham City are once again the talk of the media and a  familiar story has risen its head thanks to a story in the Mail.It’s in reference to Birmingham City and how important promotion back to the premier league is to the club or it could mean we are heading for Administration .Having read through the article it seems for me to be full of inaccurate facts and unsubstantiated facts like .

 

“The wages of Chris Hughton’s squad are just less than the club’s annual turnover.”

Now, since the article actually says that accounts are yet to be released I ask How does the writer know this? or like i suspect is he basing this on last years wage bill and not the current wage bill which I suspect is greatly different to last seasons.

In the article it states that the Club accounts will show a small profit which on all known dealings of out goings and comings I wouldn’t dispute , so once again based on that I ask how can that be a bad thing how many more teams will turn in a profit or does that mean they are in a worse position than us with the men from the Administrators knocking their door already.

Most Clubs who get relegated from the Premier League slash wage bills by selling top players, it’s a way of life for many clubs, have Birmingham City done anything different or have they been sensible and cut the wage bill so the club has once again become self-sufficient so not needing to rely on funds from benefactors/investors but will be run on a very tight budget and remain solvent .

So we wouldn’t be seeing the talents of the past at St Andrews if we remained in the Championship and I would even expect one or two top players to go in the summer but I very much doubt it would mean administration, too many people, Banks included, would stand to lose a lot of money.I also wouldn’t dispute that we would possibly still have a short fall in financial figures and would expect that to be at least 9 million but who is this short fall owed to, Banks by direct loans or shareholders who have invested and I would say looking at statements that have been released in the past  that shareholders are the clubs biggest debtors so again another good thing in the fight to stave off administration. All will be become clearer with the release of the financial results up to end of June 2011 which are due by 30th April 2012 and the same up to December 2011 which are set due by 31st May 2012.

For me the worse it would mean is back to life as a mediocre Championship club with little funds to spend , No administration but still a Birmingham City and nothing anywhere near as bad as the mail article is painting it could be………KRO

…by blues brother (Member of birminghamcityforum.co.uk)

Advertisements

Please Leave a Reply...KRO

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: