Accounts do the Talking

The owners of Birmingham City do not seem the type to come out and address the fans with their intentions. We still have no clear indication from Hong Kong of just what the strategy is. We’re left watching their actions and making inferences thereafter. Recent spending is reason for cautious optimism in my view.

Birmingham International Holdings Limited posted larger loses for quarter 4 than they did the preceding year. The accounts detail this expenditure relates to changing the manager and the recruitment of new players.

The club has finally began a focused recruitment drive. In January it certainly appeared as though the club had more money to spend on players, as opposed to amounts previously being available for players. The past two years felt like the club struggled to compete for signings. As a result of this improvement in recruitment, we would expect to see a reduction in the accounts. Something to worry about? well there has to be some risk involved in trying to take the club forward, although the company will need to make a return at some point.

Trillion Trophy Asia Limited have made a loan facility available for the club to the tune of £26 million. This is to be secured against St Andrews at an interest rate of 8%. I would not be particularly worried about St Andrews being used as collateral for the loan, most business loans are done this way and it is usual practice albeit subject to higher risk. It is understandable that the ground being used in this way would worry supporters, but Banks require collateral upfront in exchange for funds.

We also now know that the summer signings of Che Adams, Ryan Shotton and Greg Steward cost £1.4 million. The Birmingham Mail reports that the January signings are subject to add-ons and the outlay from the club may increase further. It will be interesting when the next accounts are filed to see how much has been spent since.

The summer outlay, in contrast to the January outlay gives us some indication of where the club see themselves in the coming years. TTA completed the takeover in October and having provided funds in the past, certainly showed willing to Back Zola in the transfer market.

It is plain to see that the fans did not agree with the decision to change manager, this will remain a sticking point until results improve. However, in terms of getting the club on a more competitive footing, it does feel like the new owners want to find investment for the club. We can only hope that we see a return on the pitch so the club can repay any loans it takes out.

How do you feel after the last transfer window?