Often Partisan

BCFC Accounts Show £15.7mil Profit for Year Ending 2012

Accounts have been made available for Birmingham City Football Club PLC for year ending 2012 and show that the club made a profit after player transfers of £15.7million.

However, the club made an operating loss without football transfers taken into account of just under £4mil with turnover dropping from £61mil the previous season in the Premier League to £39mil.

There is also a statement with regards to the details of the Xtep deal and why it was terminated. The accounts state that a second counter-deal with Xtep was unannounced whereby Xtep were paid HKD10mil per annum to purportedly pay for advertisements and promotions in China. The Xtep deal also included a 50% reduction in payments to BIH if BCFC were relegated but the counter-deal did not have a reduction, thus meaning that Xtep were effectively paid to provide BCFC’s kit in the 2011/12 season.

As the accounts are fairly lengthy and complicated it will take some time to digest them fully and a full analysis will be available tomorrow.


85 Responses to “BCFC Accounts Show £15.7mil Profit for Year Ending 2012”

  • Macc lad says:

    Great piece of financial accumen there. Be good to see if anything ever came of our supposed Chinese advertisments.

  • garrybluenose says:

    Is this full calendar year 2012 (1-1-12 to 31-12-12) or end FY 31-3-12

  • Asif ashiq says:

    So if that much profit made how come or why are we in a mess?

    • almajir says:


      We made a loss of £10mil the season prior. There are historic debts before that. Where do you think the money comes from to pay that off?

      • chris says:

        Does this include Mutch, Trollope, Hughton & Calderwood transfers, will wait til tomorrow if you haven’t read it yet.

        • almajir says:

          I would assume so – individual names aren’t listed but all those happened in June IIRC

        • James Black says:

          It would appear in the minds of some that football clubs don’t pay players wages, nor staff in general. That they have no bills for policing, utilities and the players cycle to away matches and sleep in a tent. Its not just about transfers Chris, expand your mind just a little.

  • chris says:

    Does the year ending mean June 2012?
    If we have made so much profit on players and a £15 mill profit despite a £4 mill trading loss why does Pannu seem so intent on selling more players?
    Most of that profit plus the parachute payment and other income should again mean a decent income around the £35 million mark.
    Seems he wants too big a pot sitting in the bank while the team suffers and may even get relegated, so risking the next two years parachute payments.

    • chris says:

      i see June , thanks

    • almajir says:

      Unfortunately not.

      The thing is, Blues have historically made a loss so with no overdraft or similar they had to make a profit this year just gone (and this year too).

      The accounts are very specific in saying that to remain a going concern player transfers will have to happen AND Carson can’t recall his loan. It’s all about Cashflow.

  • James Burton says:

    Do these accounts reduce our threat from potential administration at all?

  • Atahualpa is a BlueNose says:

    Losing a third of your income was always going to be difficult to contend with.

    This and – more importantly – next season / financial year, are going to be the real tests as it looks highly unlikely we’ll be promoted or sold anytime soon.

    Once Butland departs, we will not have any ‘special’ players left to sell, and that will become the critical period for us.

    What a sad farce with the whole Xtep ‘deal’.

    • Gary R says:

      From PP’s comments in the BM etc etc, reading between the lines and hearing the tones in which he speaks, I interpret it as PP basically saying, though not directly, that he’s banking on selling us by the summer at the latest. As it’s been mentioned, the only major asset we have left is Jack Butland, as Curtis Davies wouldn’t be anymore than 3 Million and then there are those that are out of contract. What happens to keeping us going after that lot has cleared off. There’ll be no money left. Therefore we’d go into Admin…unless….

      We’re sold.

      • Atahualpa is a BlueNose says:

        They may have a back-up plan – if it can be called that – in which CY stands a chance of being cleared and if we have not been sold, then he resumes control and finances the club until such time. CY’s trial in April might take until June/July to get resolved and even by then we could really be struggling if nothing happens on the ownership issue.

        By sorting out the accounts and books at BCFC as well as BIH, they may even be angling for a short-term investment deal from one of CY’s myriad of associates, if they can ‘prove’ that we are a sustainable club and not in a critical coma.

        But it may be worth to take one thing into account; even losing our EPL status meant that we had an operating loss of ‘only’ £4m – after the massive reduction in income, which is a sign that by having the right careful owners, we are a well-run club and that in the long-term, we could prove to be a success story.

        If only someone else would notice this…..

        • Oldbluenose says:

          Atahualpa, old friend, Let us hope [ very hard indeed ], that your last sentance has/is, being noticed and thought about, by someone — somewhere, vey quietly, !!!!!!!!!!!.

          • Atahualpa is a BlueNose says:

            Hi OBN

            Here’s hoping with you as well my old mate.

            The accounts report has also apparently stated that “advanced negotiations are taking place with one group”.

            Maybe one of the reasons PP was in such a hurry to get back to HK??

  • Bluenosed says:

    That’s great news. We will buy this window now, not sell.

  • I Roth says:

    Why have we to sell players when we are not too badly off. How can we get out of this league if we sell everyone who is any good. Butland should be kept at all costs. He and the other youngsters are the future. Get rid of the lump Zigic , Cladwell, and a few older useless ones. Never any good news lately.

  • Stephen Carr's hairdresser says:

    This is just shocking, but unfortuantely not suprising. How we did not have a similar clause with xtep for relegation beggar’s belief, and I would love to know just what exact benefits BCFC got for the HKD10m paid over last year?

    The fact we made a profit on the face things means basically nothing, it’s lack of cash that puts businesses into administration. I’d be interested to see what the cash flow statement looks like. Is there a link to where you got this info from, Almajir?

    Also, just wanted to say long time reader but this is my first post. The amount of time and effort you put into BCFC is amazing and as has been noted very many times, puts (paid!) journalists to shame! Keep up the good work, it is very much appreciated!!!

  • James says:

    With cashflow the main problem; the support of the missing fans is critical.

    It won’t solve the problems but staving off admin is of paramount importance this year. An extra 5k on the gate at £20 a pop plus ground spends would make us a tad more stable.


  • Liam Moakes says:

    Exactly what Pannu said then James, and got hammered for most of our fans for saying.

  • Liam Moakes says:

    Should read, hammered for BY most of our fans.

  • Oldbluenose says:

    Almajir;, All figures quoted as profit/loss, seem to indicate that we are on the cusp, ?. Have you or the club any indication of just how much we need to raise to have enough cashflow to see us saftley through to the seasons end, ???.

  • Paulo says:

    Very worrying results. It does show that the attendance of many more at St Andrews is desperately needed (as previously noted), but to achieve this ..people will want a succesful team. Oh, the irony.

  • BobbyBlue says:

    Whoever was responsible for that second Xtep deal is a muppet, doesnt care about Blues or both. How can you make such an agreement?! Common bloody sense to have the 50% reduction in both.

    It seems everyone is thanking you today Almajir, so, not wanting to feel left out – thanks for your hard work. OP is the first place I check for Blues news. No rumour. Just fact and opinion. Keep it up!

  • Brian king says:

    How much is HKD10mil in sterling and what proof do we have of any advertisements and promotions in China.

  • Atahualpa is a BlueNose says:

    Have just read that “boardroom fees” shot-up from just over £80k to nearly £700k.

    Would be interesting to know what has caused this explosion.

    • Oldbluenose says:

      Hi Again Atahualpa;, I just read the same report printed in the Evening mail, !!.

      Just exactly was the added £600,000 due to ,??????.

      • Atahualpa is a BlueNose says:

        Considering CY is persona non grata and his son is hardly ever seen at St Andrews, this only leaves PP as a Board member.

        But then again the accounting period is for the 2011-12 financial year when others were still around. Still a considerable sum whatever the circumstances, and just as we were supposed to be making cuts and being cost effective..

      • almajir says:

        A director’s wages…

        We paid a director 12k a week last year.

        Edit – my maths is off. 13.5k per week

        • Atahualpa is a BlueNose says:

          How or why this director was essential for that particular year and is still earning the same or more for the current financial year, will hopefully be included in your blog tomorrow almajir.


          • Atahualpa is a BlueNose says:

            What’s a grand and a half per week here or there.

            Just hope they are not going to be getting a Brucey Bonus for the most ridiculous of reasons such as ensuring there is bog roll in the toilets or such like…

        • Oldbluenose says:

          It would seem that , [ that someone ], Made damned certain he got his ” wages ” o-k, !!!!.

  • Chris says:

    One of the problems if im correct we have is that the turnover is likely to be a lot less for this finicial year because last year we had Europe that brought in tv month etc , we have lower crowds this year and also had a good cup run that brought in a good amount from tv with 4 out of the 5 games being televised. So all this means we are going to have to sell more players to make the money up but have we got enough value in the squad to do that ?

  • Ali Duncan says:

    From your brief reading so far and your other knowledge do you have any idea the amount required from player sales to keep the wolf from the door?

  • Neal says:

    Are they liable for corporation tax on the £15 mill profit ( 20% I assume ) or is that negated by the trading loss?

  • darren astley says:

    almajir can you find out if villareal recieved there sponsors money off xtep as they were sponsored around the same time.. they were a small stable club challenging for europe get involved with xtep get relagated the curse of hong kong..keep up the good work

  • BhamCityJulian says:

    It wouldn’t make sense for Xtep to accept a relegation reduction because they’d have to advertise more to promote the brand and risk unsold stock.

  • Birmingham 200 says:

    It’s really simple
    It’s called asset stripping

    Overheads will be cut this year to £25m – with salaries £18m – £21m

    TV revenue will be £21m ( Next season this will reduce to c £11million which is why we are blooding the kids this year)

    Sale of Foster, Mutch and Hughton and co is £10million ( depends on the accounts cut off)
    Then allow c£10-15 million for ticket sales and commercial revenue

    This again is c£15-£20million profit

    Add the eventual sale of Butland Redmond Davies and Zigic and you have about another £15million which wont be replaced

    the club will be sold when all realisable assets have been sold

    Our wage bill next year will need to come down to c £10-£11million
    hence the kids
    Though Reilly looks a future realisable asset and a half…..as does Packwood at centre half

    • almajir says:

      You want to know why you’re wrong?

      The date of the end of year for the accounts is June 30 2012
      Hughton left June 7, Mutch June 22 and Foster June 29. They are all in last years accounts.

      An asset stripper buys something cheap, and then flogs everything to make a profit.

      Carson bought BCFC for approx two to three times the going rate – do you see the problem here?

      I know you want to believe there is a conspiracy, but there isn’t. The only reason we’re in the crapola we’re in now is cos Carson chased the dream and overspent in the relegation season…

      • DoctorD says:

        That’s not the *only* reason surely…there was the xtep deal, the lack of relegation clause in Zigic’s contract, McLeish’s inability to get 1-2 more points from the last six games of 2011-12, the shenanigans of the board, bad luck with injuries etc etc

  • Birmingham 200 says:


    Carson didn’t but the club with the intention of asset stripping
    An asset stripper also realises his assets to pay of his debts when required

    Given Carson’s plight and his need of liquid assets ‘cash’ to pay the HK govt I know what I’ld do if I was him. Stall the court case and realise my assets……

    £15 million last year
    £ £10million this ( allowing for mutch and co going into last year)
    £20 million from the sale of redmond butland zigic and davies

    £50million is HKDollars £625 million……………………

    • alexjhurley says:

      What utter drivel

      • Blue in Spain says:

        The same utter drivel, these so called experts repeat ad finitum on their comments in the Birmingham Mail. Faceless, internet warriors, with little grasp of how much it costs to run a football club, as all they ever quote is transfer fees, and some players wages.

        • Birmingham 200 says:

          Sullivan told us in his last season exactly how much it takes to run a football club
          An alternative rule of thumb is c two thirds of income + goes on players wages…

          I accept Carson bought the club with good intentions and Pannu did an amazing job to keep it going given the turmoil that was going on.

          This is about what you would do if you were facing a money laundering charge….a potential tax bill of millions..all your assets had been frozen and your company was loss making all apart from one division called BCFC……

          • Blue in Spain says:

            You have proof, if not give it a rest, this libellous bullshine is becoming tiresome. Money has not disappeared, you just said it yourself about players wages costing two thirds of income, and isn’t that about where we are at.

          • birmingham200 says:

            It’s not libellous bullshit. Calm down with the accusations can you…other people are allowed to have opinions….
            Carson as effectively the ‘owner’ of BIH and Blues can do pretty much what he likes
            Moving funds from one company to another is perfectly acceptable if he wishes to do it within certain constraints
            I happen to believe that is what is happening ; it is what I would do in his situation and he is perfectly entitled to do it

          • almajir says:


            You do need to be careful with your opinions, because they can be libellious and defamatory.

          • Birmingham 200 says:

            It is not libellous bullshine
            Yeung as effectively the owner of the club is entitled to move funds from BCFC to BIH
            It sounds like they have to do it to shore up the accounts of BIH anyway to prevent administation..based on Tom Ross on Facebook today
            and if I were Carson I would be looking to realise assets for my forthcoming tax bill…again perfectly legal done the right way

            so Mr Pannu will be pefoming his usual miracles ..keeping us in the Division by supporting the manager ‘just enough’….shoring up BIH accounts so when they are published we aren’t forced into administration, preparing us for the loss of £8milllion sky revenue next year and building up a contingency fund for his boss…
            All perfectly legal…above board and not libellous

          • almajir says:

            It is… if it was in the accounts. Which it isn’t.

            I suggest you leave it there.

      • Birmingham 200 says:

        just exaggerating to prove a point….

    • almajir says:

      Might I suggest you read the accounts prior to commenting again?

      You might not look so foolish…

      • Birmingham 200 says:

        those accounts that have been delayed for years….where the previous auditors resigned….
        My figures may be out but the principle remains the same….BIH is bleeding the club dry…in my considered view

        • James Black says:

          Birmingham 200 Please explain how that is cuz your totally off the mark. I believe Al has already told you but well you wont believe it coming from me and seems you don’t accept Als previous explanation that they are not. But please enlighten us how are they bleeding us dry when they are receiving nothing from us.

        • almajir says:

          Your considered view would be worth more if you got your facts right.

          The Birmingham International Holdings accounts are delayed.

          These accounts are from the Football Club – and they are on time.

          • Birmingham 200 says:

            ….and based on the stance of the Directors regarding BIH and the widespread publicity surrounding the club how much do you value they are a ‘true and fair view’ or how many SSAP’s have been utilised to ‘window dress them’……….?

          • almajir says:

            Have you looked at the accounts?

          • James Black says:

            Bit lost in that statement Mr 200. However all i can say is lets see how it pans out in the end and judge on facts and not speculation, wild theories or prejudices. Were all Blues fans and i believe we should stand behind the owners who are not half as bad as you and others seem to think. But what do i know?
            Personally for whatever reasons its happening, im happy to see the kids brought out and were a grass roots football club even if by default. I still believe its about to turn, now kick me for believing but i do.

          • birmingham200 says:

            James, I regard Carson Yueng rightly as the most successful chairman in Blues history. I think Peter Pannu is worth every penny he earned last year for dealing with the situation he has

            I went to Leeds v Blues and applaud young Blues fans giving their all for the team on the pitch…long overdue..

            Unfortunately circumstances relating to BIH are likely to put us into administration it would appear or so we are told…unless money can be taken from BCFC to BIH and ultimately to support Carson with his tax issues. I beleive that is what is happening and is based on considering how Carson’s motivations may have changed since he bought the club and his subsequent arrest…It is not illegal and as owner of the club if I am correct he is perfectly entitled to do it

          • James Black says:

            Ok Mr haircut 200 (showing my age) a measured comment which i commend you for but not sure abt whether its quite right but i stand to be corrected..

          • birmingham200 says:


            Yes I have looked at the accounts….I am only MBA qualified though and have only run my own business for 30 years signing off 30 sets of accounts ……………….. so await the report of the Blues Trust Accountants Professional analysis with interest…

  • James Black says:

    Losing millions it appears makes you a thief. I’ve never known a criminal go to jail for not gaining. Intent to gain when not relegated is hardly a crime. Seems that Carson is a criminal becuz his good intentions backfired. I really don’t understand what so many are getting at sometimes. I really don’t understand the inability of a few to read the whole book instead of just the first chapter. I’m agog at some of the comments here and wonder what ever happened to the good old British education system. So intent on pulling people down they cant see the obvious. The man has lost millions on his Blues adventure and you call him a criminal. Also note the charges against him now appear to be basically tax evasion and money laundering is not to be the charge. So will those who many months ago accused him of gun running, and having a prostitution ring and aiding world terrorism now apologize.

  • cyprus blue says:

    Im amazed at the total lack of understanding of some people on here. If you dont understand business, just dont comment, or learn before you follow the herd. Go to night class and learn and you will see why the anti carson yeung idiots are so wrong

    • James Black says:

      Cyprus Blue. I often wonder what the guy must be feeling when his lost so much on a venture that he was badly advised on, put up so much money and lost it but he invested. Then after all that the hate squad call him an asset stripper. Are they mad what? This all happened becuz of a money laundering charge and now reduced to lesser charge and as yet his still not guilty, but seems he is b4 his judged.It has cost him everything. He never asked for thanx and these people who think that buying the odd ticket means they have done more. If he is ever cleared then i hope these people apologize but they wont. In truth, whats at the back of this is anti Chinese sentiments which they conceal behind dumb comments. Its like Obama haters. They cant use the N word no more so they turn it into Marxist and Muslim instead even though his not either. Just admit it you guys and don’t try and conceal the dislike of other races behind false charges which u have dreamt up is all i can say. Your comments are heartening Cyprus, some common sense from the few and glad Al does his best to tell them but seems they don’t get it or don’t want to get it. I’m still trying to work out how losing millions makes u a thief.

  • cyprus blue says:

    Thanks James. Im glad im not on my own! Carson never wanted any of this to happen. He has invested a lot, and whilst it may not be as straight forward as a billionaire owner, he only ever had Blues’s interest at heart. It makes me cringe when they sing the we dont care about carson song, the herd mentality going along with those that dont understand in the first place. Ridiculous!

    I suggest they try and look at the situation from CY’s point of view, then maybe they will understand a little more. I think CY has upset the wrong people in HK and I think now that he will probably be found not guilty (I Hope) but the damage has now been done, not just to us (Blues) but to him too. Losing face means a lot to Chinese people.
    I dont think this is a racist thing, something that is getting out of hand in football now, I think it is just lack of understanding. People are just looking at the cake rather than how it was made!

    • James Black says:

      Agree Cyprus. My racist charge is based on that well some of the terms used seems to be bordering racism and i believe that to make such rash judgments without knowledge can only be cuz you have something dark at the back of your mind. Of course i cannot prove it but i believe it. Now brace yourself for the hate explosion about to come our way hahahaha. Dont give a toss though, i do not believe the guy is any worse than most of us and he brought us the only real cup in my lifetime as i dont really count leyland/daf nor the other one which was such an event of mammoth proportions i cant even remember what it was called. Seems that is regarded in higher esteem than the league cup. We was ninth in the league one year, relegated the next. I hope the Chinese dont judge us all as being as narrow as many on this site and in general. Some days im apprehensive to speak out cuz the opinion is so misguided and i know i will be challenged by nonsense claims. The only good thing about it is it deflects from the Lee Clarke haters too, whom i still believe will turn it around using kids and becoming a proper football club, doing the grass roots stuff and i pray im right as i cannot stand the i told u so mentality. But when it does turn round, i will resist saying told you so back.

      • Blue in Spain says:

        James, I don’t think the majority of posters on here are as bad as the few that post on the Birmingham Mail. I’m surprised that some of them can actually use the internet. I have to say over the last few years I have been ashamed by some of our fans. If you try and put a reasoned argument forward in favour of the manager, owner etc, you’re shouted down for being prepared to settle for second best!

        • James Black says:

          I know Blue. Ive seen them and i cringe with embarrassment. Even when Lee was doing the charity think for kids on the Blues website, they took the opportunity to have pops at him and get out of brum was just an average comment. If lee Clarke, Peter Pannu or Carson Yeung ever read this which i hope they do, i hope they realize that some of us have some understanding of reality and i hope they don’t think all brummies are morons. Ive been accused b4 of regarding myself as a better fan and ive been guilty of losing my cool more than once, but sometimes i dunno how to keep cool in the face of such comments. I admire Al cuz he keeps his cool a quality i lack. Im not a better fan than those that speak in frustration, but i do check facts to the best of my understanding b4 i speal out. been proven wrong sometimes too but hey, but all i wish is people would check out what they say b4 they say it. I hear all sorts of guff from people. lee clarke has lost the dressing room but from what Al reported from visiting there, thats far from true. All speculation based on mostly biased mindsets and herd mentality. No im no better than anyone here but i do think and dont follow the crowd, thats the only difference. I know others care but keep it within the bounds of reality though and get behind lee clarke the board the staff and fight together i believe is the only way we will come through. If i offend people im sorry but sometimes im in shock at the comments as they are sometimes so wide of the mark.

  • cyprus blue says:

    Ironic that the comment prior regarding climate change and CY. In todays papers it says that climate change is no where near as bad as expected…………

    • Blue in Spain says:

      But he’ll still get the blame. I, too, find it incredible that some so called fans, think it is their god given right for any owner to invest in a club, to the point of his own bankruptcy, yet these people can’t even be bothered to get out of their armchair.

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