Birmingham City handed suspended two-point deduction over unsuccessful takeover

Birmingham City have been given a suspended two-point deduction by the English Football League for rule breaches during an unsuccessful takeover bid.

The Championship club, who announced this week that American Tom Wagner is to buy a 45.6% stake, admitted to breaching EFL regulations.

The deduction is suspended until the end of the 2023-24 season.

Blues were initially charged following "a thorough investigation" in February.

The EFL said the owners' and directors' test was breached when the club "allowed a number of individuals to bring themselves within the definition of a relevant person and to acquire control of the club without the prior approval of the EFL".

It continued: "Those individuals received sanctions last month and the club has now entered into an agreed decision with the EFL which includes the suspended sporting sanction and liability for the associated costs of the investigation.

"In addition, Birmingham City's owner, Mr Vong Pech, has entered an agreed decision with the EFL after admitting to a breach of EFL regulations when he permitted those individuals to acquire control of the club without the prior approval of the EFL.

"Mr Vong Pech was issued with a warning and reprimand, and is liable to pay the costs of the investigation."

There was an approach to acquire ownership of the club by Paul Richardson and Maxi Lopez, which came to an end in December, and separate negotiations with unnamed potential investors, but the EFL has not confirmed the identities of anyone involved in the case.

Blues have been owned by China-based Birmingham Sports Holdings Limited since 2016.

They bought the club as Trillion Trophy Asia following the tenure of Carson Yeung to become Blues second successive ownership from Asia.

The new prospective part-owners - hedge-fund managers - are to purchase 24% of shares from Blues' parent company Birmingham Sports Holdings Limited, plus 21.64% of shares which will be transferred from Oriental Rainbow Investments and Achiever Global Group.

Wagner's company Shelby Companies Limited will also take ownership of St Andrew's, the club's home since 1906.

City, the Championship's longest survivors, finished 17th last season in their 12th consecutive campaign in the second tier - their first under head coach John Eustace - nine points clear of the drop.