Interest Payments

Birmingham has to pay out interest on loans taken out for various purposes.

The amounts the club is paying out in interest is very low compared to other clubs. Norwich can be viewed as having had a similar history of ups and downs to Birmingham and their annual interest bill is currently £1.5m, more than twenty times that of Birmingham !!

This can be viewed two ways. It is great that the club has such small amounts of money owed to the banks, and shows great prudence in planning for the long term future of the club. The other way to view it may be that the club has not "speculated to accumulate" and that that is why the team does not do as well as it should. Your own personal view on life will point you to which you see as more important.

For the long term survival of the club not having big borrowings is a great position to be in. Looking at Bolton and Portsmouth again shows how much better run Birmingham have been.

 

Interest