By David Gold
May 6 – The FA and Premier League have given Birmingham City the green light to play in Europe next season amid concern over their financial stability.
Birmingham qualified for the Europa League with a 2-1 win over Arsenal in the Carling Cup final earlier this season.
Question marks were raised over the finances of the club’s parent company, which led to suggestions that they may be barred from playing in Europe next season.
UEFA delegates its licensing scheme for participation in European competition, and so it was up to the Football Association and Premier League to decide on Birmingham’s fate.
Birmingham needed to provide written assurance that they were able to meet their financial obligations for next season without loans being called in to satisfy the licensing requirements.
Club acting chairman Peter Pannu said: “This means we can all focus on what are really exciting times for the club.
“We have three important Premier League games remaining and we can take this good news into them – starting at Newcastle on Saturday.
“Then we can all look forward to competing in the Europa League alongside some of the continent’s finest clubs.
“Being granted the licence – which we were always confident of achieving – will put to rest once and for all some of the scare mongering that has surrounded the club.”
Birmingham revealed losses of £27 million ($44 million) in February, though owner Carson Yeung has raised £6.7 million ($10.9 million) since to stabilise the club’s finances.
Though Birmingham’s participation in Europe for next season has been assured, club officials will remain vigilant over the club’s long term future.
In 2008-09, Portsmouth were also allowed to play in the Europa League after winning the FA Cup despite their financial problems, but they have since gone into administration and been relegated to the Championship.
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