December 11 – West Midlands Police have ruled out a criminal investigation into allegations of “financial irregularities” in the accounts of Premier League Birmingham City, they announced today.
After three weeks studying documents handed to them by the club, detectives from West Midlands Police’s Economic Crime Team revealed they had found no criminal wrong-doing.
Birmingham City were informed of the decision yesterday.
West Midlands Police had met with club lawyers amid growing bitterness between new President Carson Yeung and the previous owners over concerns uncovered during a period of post acquisition due diligence that followed the £81.5 million takeover.
Yeung and his group claimed that the former directors had taken an advance payment of £420,000 in management consultancy fees before they left.
There were concerns over a controversial £1 million pay-off and packages of perks to former managing director Karren Brady that was blocked by the club’s new owners.
Following the takeover, it also emerged Yeung had been left with £6 million of bills for transfers, agents fees, bonuses and taxes that threatened to rise to £11 million.
West Midlands Police last month said it was assessing a number of unspecified allegations put forward by the club during a meeting at their St Andrew’s ground.
But a spokesman for West Midlands Police today said: “After careful consideration and examination regarding concerns raised by representatives of Birmingham City FC we have now advised the club that we do not feel there is any criminal matter to be further investigated.”
It is understood Birmingham City’s new owners have been informed if they want to take any action it will have to be through the civil courts.
A team of forensic financial experts hired by Yeung’s team are thought to still be going over the club’s accounts dating back to 2007 when he first bought into the club.
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