Birmingham City has filed their annual accounts with Companies House for the fiscal year 2022-23, which finished barely a fortnight before Knighthead Capital’s investment and purchase of nearly half of the club from Birmingham Sports Holdings Limited (BSHL) in the middle of July.
Blues made a pre-tax loss of £25.4 million in the final year of the previous Trillion Trophy Asia era, a little increase over the club’s losses in 2021-22. The year saw an increase in revenue to £19.7 million and a reduction in overall salary bill to £28.9 million, yet the Blues continue to lose money year after year. Hopefully, by this time next year, the club’s accounts will reflect the benefits of Knighthead’s presence.
The announcement comes as new records suggest Knighthead will have to invest £58 million in the club by early next year. These accounts represent the penultimate chapter in the club’s previous ownership structure, prior to the heralded acquisition by US backer Knighthead Capital in July and subsequent share transaction with NFL star Tom Brady.
Other major data in these reports reveal that matchday and season tickets declined from £4.1 million to £3.7 million, while broadcasting revenue increased from £8.3 million to £9 million. Other commercial income, including sponsorship, corporate hospitality, and merchandise, increased by £1.4 million to £6.9 million.
Wages, pensions, and other payroll expenditures actually reduced by £3.2 million to £28.9 million, still significantly exceeding the club’s yearly revenue of £19.7 million, which would undoubtedly be of interest to those in charge of overseeing Financial Fair Play compliance. Looking ahead, the annual report stated that forecasts indicated that the club will require about £58 million in further capital from Knighthead Capital for the time after its investment until February 2025.
Blues also announced, after the balance sheet date, that they owe a net sum of more than £2.2 million in player transfers as a result of signings and sells from July 1st, 2023, including the January transfer window. Siriki Dembele, Dion Sanderson, Ethan Laird, and Lee Buchanan arrived in the summer, while Alex Pritchard and Paik Seung-ho joined in the winter.
During that time, the Blues also sold Tahith Chong and Kevin Long.
The accounts cover the 2022/23 football season, which was Blues’ 12th consecutive season in English football’s second tier, with a 17th-place finish. They are the Championship’s longest-serving team, having remained in the level since being relegated in 2011. The Blues’ average attendance was 16,756, up from the previous season, but ticket sales were down while sections of the Tilton Road and Kop stands remained closed for ongoing repairs.
