Birmingham City have been issued a two-point deduction by the English Football League (EFL) for rule breaches during an unsuccessful takeover bid, which has been suspended until the end of the 2023-24 season. The EFL launched a thorough investigation in February, and found that the club had allowed a number of individuals to acquire control of the club without prior approval from the EFL, breaching the Owners’ and Directors’ Test. As a result, Birmingham City’s owner, Mr Vong Pech, was issued with a warning and reprimand, and is liable to pay the costs of the investigation.
The attempted takeover was led by Paul Richardson and Maxi Lopez, which ended in December, with separate negotiations with unnamed potential investors. Birmingham City have been owned by China-based Birmingham Sports Holdings Limited since 2016, and the prospective part-owners are set to purchase 24% of shares from Birmingham Sports Holdings Limited, plus 21.64% of shares from Oriental Rainbow Investments and Achiever Global Group. Wagner’s company Shelby Companies Limited will also take ownership of St Andrew’s, the club’s home since 1906.
Birmingham City finished 17th in the Championship last season, their 12th consecutive campaign in the second tier, nine points clear of the drop. This was their first season under head coach John Eustace.