Birmingham City Football Club boss David Sullivan has been arrested by police in Essex after a woman in her 20s claimed she was sexually assaulted by him.
The multi-millionaire businessman who co-owns Blues with David and Ralph Gold, was questioned by officers and released on bail until the end of August while detectives carry out further investigations.
Police were contacted in the early hours of Tuesday morning by the woman who claimed Mr Sullivan had inappropriately touched her in a sexual way.
The alleged offence is believed to have taken place in Mr Sullivan’s mansion in Epping, Essex, on Monday evening.
Essex Police said: "Police were contacted by a 25-year-old woman from east London at 1am on Tuesday, July 1 who stated she was assaulted inside a house in the village the previous evening.
"Detectives arrested a 59-year-old man from the Epping area later in the day on suspicion of committing sexual touching and subsequently released him on police bail until Thursday, August 28 pending further enquiries."
Birmingham City FC confirmed Mr Sullivan had been quizzed by police, but claimed the allegations made against him were false.
In a statement the club said: "David Sullivan confirms that he voluntarily attended a Police Station yesterday following an allegation made against him and gave a 30 minute interview in which he provided the police with a full explanation of the circumstances.
"He categorically denies the allegation which centres around consensual sexual touching. The allegation is totally without foundation."
The club also denied reports in a national newspaper that Mr Sullivan had given DNA swabs to the police and that the clothes he was wearing had been taken for further investigation.