There were fresh fears about Birmingham City’s finances last night after Carson Yeung, the club’s owner, appeared in a Hong Kong court charged with money-laundering.
Yeung is the club’s largest shareholder and chairman of Birmingham International Holdings, their parent company whose shares were suspended from trading. He was bailed to reappear on August 11 and could be stripped of his directorship of the club, if convicted, but the immediate problem for Birmingham is expected to be the effect of the uncertainty on their transfer dealing and cashflows.
Clubs selling to Birmingham may want their money paid up front rather than in the usual installments, which could have a bearing on the ability of Chris Hughton, the manager, to sign players. So far, two players have joined on free transfers but Birmingham are expected to have to sell several high-earning players, while some have taken 30 per cent pay cuts after the club’s relegation to the npower Championship.
The bulk of the club’s money is from television income and the concern had cast doubt on their participation in the Europa League, although Uefa confirmed yesterday that the team’s qualification was unaffected.
Yeung, was released on bail after he paid £558,000 and surrendered his travel documents. He must report regularly to police. He was charged with “dealing with property known or believed to represent proceeds of indictable offences” totalling about £59 million. If found guilty, he would fail the Football League’s fit and proper persons test and lose his place on Birmingham’s board.
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The Football League claims that it is “monitoring” the situation but can act only if he is convicted.
The club are believed to have met yesterday’s deadline and submitted their financial plans for next season to the League, as required by relegated clubs.
Peter Pannu, the acting chairman, claimed that the club were unaffected by Yeung’s arrest. “I’ve had it explained to me that the charges relate to the 2001-2007 period and that is two years before Carson invested in this club so there is no connection there,” he said.
“Understandably the fans are worried about this. But this has got nothing to do with the club and there is no impact on the operations over here.”