Birmingham City takeover: Proposed change of hands still under investigation by EFL
- Published
Birmingham City last changed owners in 2016
Birmingham City's proposed takeover remains under investigation by the English Football League more than three months after being initiated in July.
Businessman Paul Richardson is part of a consortium including ex-Barcelona and AC Milan striker Maxi Lopez who claimed they were close to buying a stake in the Championship club.
The EFL's position on the takeover is that matters remain "ongoing".
But Richardson has admitted that they are already funding the club.
"We're providing operating funds," Richardson told talkSPORT. "But I can't disclose how much."
As a general rule the Football Association do not comment on acquisition/change of control matters involving any outfit within their 72-club set-up.
Any takeover has to meet the requirements set out in the EFL Regulations (Appendix 3), of which the EFL owners and directors test, external is a major part - and that is still ongoing, with regard to both City's current and prospective owners.
And prospective joint owner Richardson was quick to refute to any suggestion that there might have been a potential breach of EFL regulations, if it was considered that the current money being invested in the club was done without the 'relevant person' having had 'prior approval'.
'We've adhered to procedure'
"The agreement we've got with the seller is quite well known and the EFL are looking into things," Richardson added. "That is really normal.
"Any transaction, buying a club or selling a club, is looked at by the EFL and that's what is happening.
"There is a procedure in place that we've adhered to, which is quite strict. As far as we're aware, we haven't made any breaches, either us or the seller.
"As with any takeover, the EFL have to look at it in great detail and I don't think that's a bad thing. It's progressing more slowly than we wanted but it is moving forward.
"We are in discussions with the EFL. We have prepared all the documents. We await the EFL with their procedures to move forward.
"It is relatively slow, but we have a willing buyer and a willing seller. That's what you need - and we'll do everything in our powers to satisfy their needs."
The EFL's position is broadly that nobody can act as a relevant person without prior approval and, while lending money does not make someone a relevant person, if someone takes steps which would bring them within the definition of being a relevant person without approval, then that would be a breach.
The timeline on Blues' takeover
4 August: No further news on potential takeover - Eustace
19 July: Lopez & Richardson aim to buy stake in Birmingham City
9 July: EFL await information on Birmingham City takeover
15 June: MP calls on government to block sale to Bassini
13 June: Bassini reportedly interested in Blues
18 Feb: Ian Dutton takes over as Blues MD
The past and present at St Andrew's
Despite Blues' off-field affairs still being under scrutiny, things are going well on the pitch under John Eustace.
Despite getting less than a month to prepare his reshaped squad for the new season after being appointed on 3 July, Eustace's side have lost just twice in 11 games to sit just five points outside a play-off place.
Blues have been owned since 2016 by China-based Birmingham Sports Holdings Limited, who bought the club as Trillion Trophy Asia to become their second successive ownership from Asia, following Carson Yeung.
They broke the EFL's profitability and sustainability rules, leading to a nine-point deduction, on the back of incurring losses of nearly £48.8m between 2015 and 2018 - almost £10m more than the accepted adjusted losses of £39m.
But they banked an appreciable amount from the sale of teenager Jude Bellingham to Borussia Dortmund in July 2020, a deal that could ultimately be worth in advance of £30m.