Blues remain in the red as owners vow £58m injection

Birmingham City FC have remained firmly in the red as the Championship club saw pre-tax losses increase despite a small rise in revenue.

The news comes as new accounts show the owners vow to inject £58 million into the club by early next year.

According to its newly published annual report, Blues posted a pre-tax loss of £25.3 million for the year to June 30, 2023, a rise of £304,000 on the previous year.

The climb came despite the club welcoming a boost in commercial and broadcasting income streams which saw revenue increase year on year from £18.1 million to £19.7 million.

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These accounts represent the final chapter of the club’s old ownership structure prior to the celebrated investment in July by US backer Knighthead Capital Management and subsequent share deal with NFL star Tom Brady.

Other key figures in these latest accounts show matchday and season tickets fell from £4.1 million to £3.7 million but broadcasting income climbed from £8.3 million to £9 million.

Other commercial income, such as sponsorship, corporate hospitality and merchandise, rose by £1.4 million to £6.9 million.

Wages, pensions and other salary costs actually fell by £3.2 million to £28.9 million – still far exceeding the club’s annual revenue of £19.7 million, something likely to be of interest to those in charge of monitoring Financial Fair Play regulations.

Its payroll also increased, with an average of 237 employees per month, versus 218 in 2021/22, fuelled mainly by a rise in admin and support staff.

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Looking ahead, the annual report said that forecasting had showed the club needed additional funding of around £58 million from Knighthead Capital for the period following its investment until February 2025.

The accounts cover the 2022/23 football season which was Birmingham City’s 12th consecutive period in English football’s second tier and in which it finished in 17th place.

Its average attendance was 16,756, an increase on the previous season, but ticket sales were hit as sections of the Tilton Road and Kop stands had to remain closed for running repairs.

There was also a £150,000 insurance claim following a fire at the Wast Hills training ground near Kings Norton in March last year.