Birmingham City: American financier Tom Wagner agrees to buy stake in club
- Published
Birmingham go into the final game of the season sitting 17th in the Championship and set for their highest finish since 2019
American financier Tom Wagner has agreed to buy a 45.64% stake in Championship club Birmingham City.
The club say the hedge fund manager is to purchase 24% of shares from Blues' parent company Birmingham Sports Holdings Limited (BSHL).
A further 21.64% of shares will be transferred from Oriental Rainbow Investments and Achiever Global Group.
Wagner's company Shelby Companies Limited will also take ownership of Birmingham's St Andrew's stadium.
The deal is subject to approval by both the English Football League (EFL) and the Hong Kong Stock Exchange.
In a statement,, external Birmingham said the club would remain under the control of the current board until the EFL had approved the owners and directors' tests and contracts had been completed.
Wagner is expected to attend Monday's final Championship game of the season at home to promoted Sheffield United.
Letter to supporters outlines investors plans
In a letter to the club's fans, Wagner, the co-founder of Knighthead Capital Management, laid out his proposed intentions once the deal is finalised.
The Knighthead group, of which Shelby Companies Limited is a subsidiary, plan to "commit the resources, in line with EFL guidelines, the skills and the determination needed to deliver transformational improvements for the good of the club and good of the city".
They added the potential for the club is "unlimited".
Further commitments are made to delivering an "unmatched" fan experience with the desire to make St Andrew's "fit for purpose" the priority.
Investment in both the men's and women's teams is also pledged along with putting in place "high-performance facilities and culture needed for success".
Supporters are warned that the transition and plans "will take time" and will require "patience" but the new investors say they will earn their "trust and succeed with your support".
The announcement of the deal comes just under a month after Birmingham's China-based owners said they had entered a period of exclusive negotiations to sell the club.
However, BSHL have been looking for investment in Blues for some time.
Last summer former Barcelona and AC Milan striker Maxi Lopez was part of a consortium, including Blues fan and local businessman Paul Richardson, that claimed to be close to buying a 21% stake in Birmingham.
That interest was ended in December, although subsequently Lopez, Richardson and Matthew Southall admitted breaching EFL rules over the owners and directors' test by taking control of the club without going through the proper sign-off procedure.
Meanwhile, in January the club announced its future was under discussion with regard to a "proposed investment deal".
'Welcome news but the hard work starts now'
Analysis - BBC Radio WM's Richard Wilford
There is an understandable air of excitement around St Andrew's with the news that a year-long takeover saga appears to be concluding.
In the weeks since a group fronted by Birmingham businessman Jeremy Dale were granted exclusivity to buy the club there had been cautious optimism. The emergence of American financier Tom Wagner and his Knighthead group as the investors behind the bid will be welcomed.
Dale, a Blues fan, will be playing a key role in the transition. He is likely to be a reassuring presence as he knows the club and the city well, and the latent potential of Birmingham City.
The open letter to fans sent by Wagner indicates a desire to work with supporters for an improved future and a better matchday experience. The real hard work starts now.
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