David Gold: Birmingham City face tough financial choices
Mar 26 2009 by Andy Walker, Birmingham Post
Birmingham City chairman David Gold has admitted that the club face a delicate financial balancing act whether or not they secure promotion to the Premier League.
Gold was at St Andrew’s yesterday afternoon to talk up the club’s Football League Family Excellence Award, an accolade recognising the experience that Birmingham City provide for young fans and their families.
However, conversation soon turned to the biggest international talking point of at least the past six months, the recession.
The football industry certainly has not been immune from the economic downturn and it has already been suggested that as many as ten clubs below the top flight could go into administration before the end of the season.
With a wage bill close to £22million, Birmingham have gone all out to achieve an immediate return to the mega-rich playground of the Premier League and should that aim be reached, then their financial burden will be eased. If promotion is not achieved, it is likely to have dire consequences for the blue half of football in Britain’s Second City.
However, Gold, a man who has already had to try to get his other businesses into a shape that will survive the recession, has warned that the demands of the football industry mean Birmingham’s financial future will never be clear-cut.
The entrepreneur has also admitted that it will be a challenge to balance the books at St Andrew’s no matter what division they play in next season.
“If we are not promoted, we have got some options,” said Gold on a prospect of failure that he dare not contemplate.
“One, you cut your wage bill dramatically because although you have got another year of parachute payments, you are already behind because clubs will have shortfalls on their income.
“You are already in an overdraft situation because you are pursuing promotion, so you will have to cut costs. The one other possibility is that the principals of the football club are prepared to say ‘OK, we are going to continue our attack on the Premier League and are we going to put more money in?’”
