Knighthead Capital Management, LLC (Knighthead) through its affiliate, Shelby Companies Limited, has exchanged contracts with the majority owners of Birmingham City Football Club (FC), including Birmingham Sports Holdings Limited.
The Share Purchase Agreements (SPA) are subject to approval from the Hong Kong Stock Exchange and customary regulatory authority approvals in the UK, with approvals anticipated within the coming weeks.
The structure of the transaction is such that Knighthead will have: full ownership and control over St. Andrew’s, part ownership of Birmingham City Plc, significant representation on the Board of Birmingham City Plc, and will assume responsibility for the day to day running of the Club, alongside other stakeholders.
Knighthead CEO and co-founder Thomas Wagner commented, “Knighthead’s expertise is in turning around and transforming organisations that are experiencing difficulties. We have a passion for sport,” adding, “We have been involved in, and have seen first-hand, its ability to drive positive economic and social change. We 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 the good of the city.”
In an open letter to fans of Birmingham City FC, Wagner highlighted work required to improve the stadium infrastructure, commercial partnership revenue, and enhance opportunities for local youth. The letter in its entirety may be read here.
This announcement was proceeded by a club statement regarding sanctions taken against Birmingham City FC by the English Football League (EFL).
