A US hedge fund manager who co-founded a wealthy investment firm is close to buying a stake in Championship club Birmingham City, according to reports.
Tom Wagner is a co-founder of Knighthead Capital Management, which oversees around $9 billion (£7.25bn) in investments. Birmingham are currently owned by Hong Kong-listed company Birmingham Sports Holdings, who confirmed in a statement last week they had entered talks for the sale of a 24% stake in the club.
It was also confirmed that negotiations were ongoing for a 21.64% stake in the club’s parent company owned by a separate firm, which would include the sale of St Andrew’s Stadium. The purchase of the remainder of the club would come at a later date.
Bloomberg report that a business registered in Birmingham called Shelby Companies Limited - a reference to the popular TV show Peaky Blinders set in the Midlands city - was set up by a Knighthead subsidiary. Wagner is listed as a director of the company, which was set up on the same day of the statement issued by Birmingham’s owners.
Wagner founded Knighthead Capital in 2008 along with business partner Ara Cohen, having previously worked for investment banking firm Goldman Sachs. Last year, he led a consortium including NFL legend Tom Brady and ex-world number one tennis star Kim Clijsters to buy a pickleball team in the USA.
“This is a fun investment because the sport itself is fun, but we’re approaching it very seriously as a business,” Wagner said about the pickleball investment. “This isn't a deployment of capital because we happen to like the sport — it’s because we see a significant opportunity.”
Several US investors have targeted football clubs in the UK recently, with stakes in the likes of Ipswich Town, Lincoln City and Crawley Town. While in 2021 actors Ryan Reynolds and Rob McElhenney bought Wrexham AFC, who look set for promotion to League Two.
Birmingham recorded a loss of almost £25million for the financial year ending June 2022, the club’s most recent set of accounts confirmed. Major repair work to St Andrew’s - where the lower tiers of the Kop and Tilton stands are closed - remains ongoing.
Local businessman Jeremy Dale has been leading a consortium involving golf bigwig Keith Pelley attempting to stage a takeover of Birmingham. Dale, who previously worked for Microsoft, showed prospective investors around the club's training facilities earlier this season.
A statement issued by Birmingham in April said: “The club’s owner, Birmingham Sports Holdings Limited, has announced on the Hong Kong Stock Exchange that two letters of intent have been entered into with a potential purchaser.
“This is in relation to the exclusive negotiations of two potential transactions. One transaction would involve the disposal of: 24% of the shares in Birmingham City PLC by Birmingham Sports Holdings Limited.
“The other transaction would involve the disposal of: 21.64% of the shares in Birmingham City PLC by Oriental Rainbow Investments Limited; and the entire issued share capital of Birmingham City Stadium Limited by Oriental Rainbow Investments Limited and Achiever Global Group Limited.”
It follows a failed takeover attempt by former Barcelona player Maxi Lopez and local businessman Paul Richardson which fell through in December. Lopez, Richardson and associate Matthew Southall later admitted to breaching EFL rules for calling the shots at Birmingham without approval from the league’s governing body, while the club were also charged.
Birmingham were among the favourites for relegation from the Championship but they are mathematically safe with three matches left to play. John Eustace’s side sith 15th in the table.
