The losses of Birmingham City’s holding company look ‘pretty horrendous’, according to a football finance expert.

Kieran Maguire, who is a lecturer at Liverpool University, was commenting on Thursday’s publication Birmingham Sports Holding’s six-monthly accounts.

Announced to the Hong Kong Stock Exchange the figures show a slight improvement in revenue and reduction in losses - but situation remains difficult for the body which owns Birmingham City Football Club.

Maguire told BirminghamLive: “The losses are slightly down, compared to 2017 but if they are losing £17m in six months that’s still a pretty horrendous annual figure they are heading for.

 

“The good news is they seem to have control of the wage bill but that’s been counter-balanced by less control over costs, higher borrowing costs and also - because they invested in players over the last couple of seasons, the amortisation charge has gone up as well.

“It’s not great from a financial analysis perspective if they are trying to demonstrate to the EFL that there are significant reductions in the running costs.

“Having said that we have got to take into consideration they do have a slight exposure to Cambodia as well but it’s relatively insignificant.

 

“I know some fans will say we are looking at both Birmingham City Football Club and the other activities here but if you bury into the report those activities aren’t making a major contribution to Birmingham Sports Holdings.”

The reference to the EFL comes at a time when the club, not BSH, are waiting to learn any penalty after being charged with breaching the £39m loss limit over the last three years.

There has been talk of a points deduction, with a three-strong panel set to hear the case next month.

 

Maguire feels that punishment would not necessarily be a fitting one.

“When I have looked at the numbers before they don’t look promising, nobody wants points deductions or anything of this nature, it’s not what we go to watch football for.

 

“The argument is that by spending money you are not supposed to spend you are getting a sporting advantage but it is not something that I necessarily agree with.

“I know the stance taken by the EFL and having spoken to people at one or two other clubs they feel that ‘We have abided by the rules and Birmingham haven’t so we have relatively suffered by Birmingham being able to spend sums we haven’t’.

“I can see that perspective but the rules are just getting ridiculously over complex and there are no winners here.”