Birmingham City are being charged interest at 11.9 per cent on tens of millions of pounds in loans from its parent company, it has been revealed in new accounts.The figures have been detailed today in the first accounts published under the ownership of Knighthead Capital Management, which confirm a £16.1m loss for 2023/24 – before that summer window. That is despite income rising 45 per cent to £28.7m because the wage bill went up 17 per cent to £33.7m.The club entered into a facility agreement with Knighthead that made funding of up to £50m available. That was extended to £100m in October, 2024.
A strategic report from director Garry Cook in the accounts adds: “The facility… attracts a fixed interest rate of 11.90 per cent. As of June 30 2024, an amount of £48.1m has been provided to Birmingham City from Birmingham City Limited and Knighthead under the loan agreement.
