Birmingham City reports operating losses

Struggling in the standings, the Premiere League club is also dealing with financial difficulties, with the club reporting operating losses for the year ending August 2005.

Including player amortisation and trading, the club reported a loss of GBP 2.5 million, after a profit of GBP 5.8 million in 2004. Also, the club’s pretax profit fell from GBP 5.6 million to GBP 1.6 million.

Full year sales fell 5.8 percent to GBP 42.7 million, a figure partly explained by a fall in TV revenue. Additionally, the club received a lower merit payment – based on its position in the standings – of GBP 655,000.

Managing Director Karren Brady gave other financial details, explaining that staff and player salaries increased by GBP 4.2 million. Brady said that transfer fees increased because players met certain playing incentives, which increased their original fees.

The club spent GBP 15.6 million on signing players during the term, including Mikael Forssell, Jermaine Pennant, Walter Pandiani, Mehdi Nafti and Robbie Blake.