Birmingham City are now fighting for survival in the Championship after being hit with a nine-point deduction for breaches of Financial Fair Play rules.
As Sportsmail revealed earlier this week, an independent panel listened to the cases presented by lawyers representing both Birmingham and the English Football League at a hearing on Monday.
And while the EFL have yet to issue an official statement, it is understood the panel have chosen to deliver a sanction that sends Garry Monk's side plummeting down the Championship table to 18th and just five points clear of the relegation places.
The EFL were pushing for at least a 12-point deduction as well as a transfer ban in what remains the most severe punishment since Leeds United were docked 15 points in 2007.
In January the publication of Birmingham's annual accounts revealed the extent of the club's financial problems and a tale of excessive over-spending.
The accounts detailed a loss of £37.5million in the 12 months to the end of June 2018, in part due to a massive increase in wages from £22m to £38m during the managerial tenures of Gianfranco Zola and Harry Redknapp. It was reported that the club's wage-to-turnover ratio was £202 spent for every £100 brought in.
The same accounts showed the club owed £73m to parent company Birmingham Sports Holdings, with net liabilities of £55m.
Last season the club were sanctioned with a transfer embargo after exceeding the permitted losses of £39m over a three-year period, only to then sign Danish full-back Kristian Pedersen from Union Berlin for £2m in June 2018.
The EFL said they were 'exceptionally disappointed' that the club had ignored the embargo and signed the under 21 international, initially refusing to register him. Indeed it was only two days before the start of this season that 'after consideration of the legal position as between the club, player and the EFL' the registration of Pedersen was accepted.
It is believed Birmingham's lawyers pushed for just a six-point deduction, and have been left stung by the severity of the punishment.
It leaves Monk now facing a real battle over the final weeks of the season, with promotion contenders West Bromwich Albion, Leeds United and Sheffield United lined up for their next three matches.
After that they then meet relegation rivals in Ipswich, Rotherham and Wigan before facing Reading on the final day of the season.
batigol1967
0
Do it for man city pls
keep dreaming loserpool fan if you wanna win premier league play like men , city are too rich and turnover is more than billions so shut your ass loserpool
TheRaphtor22
0
Do it for man city pls
Assessment
0
Hope they don't get relegated by this deduction
combination
0
Ends up working in their favour, they werent getting promoted and probably not getting relegated either. They can atleast start new next season.
interfaces
0
Drops them from 13th to 18th. Only 5 points above relegation.
yummyy
0
Even when we are battling for playoffs, we still have to deal with a relegation battle. Tell you what we never have a boring season.
citizens
0
Hardly fighting for survival... They have a 5pt cushion and are also stronger than the real relegation teams
fencing
0
Now city, it¿s only fair one rule for all
eeasy
0
Hmmmm. There are a few much higher profile clubs that seem to be exempt from investigation and or penalty.
Tylerwest
0
Why do some clubs get fined and others have points deducted?
Theodosis
0
We've pissed more than 9 points away this season as it is. Bit of a shame because we've played so well. Every game is now a cup final and for once in my life I actually think this bunch of lads are capable.
basalive
0
So city should lose at least 9, right?
acteman
0
Just a shame that the same thing wont happen to city. The owners are preparing a nice bonus for the FA now as we speak.
Luckus
0
Ok. Now do same for man city.
usability
0
Most Blues fans are happy with this. It means next season can carry on as normal. It also isn't the relegation death sentence it could have been.
norloser
0
Honestly, what's the point of supporting this club. Nearly 10 years under corrupt owners with one being jailed for fraud with dross football and no hope. There's a reason I watch premier League games. I actually enjoy watching them. Even thinking about Birmingham city stopped being enjoyable a long time ago.
tension
0
How did Villa get out of their financial issues so quickly? But Birmingham end up with a point deduction? Another successful Redknapp destroy and exit.
outdoora
0
Just get rid of FFP and let clubs go belly up. Fans can then complain afterwards about no safeguarding. That seems to be what people want.
521Jack
0
I’m not saying that there’s a pattern here. But wasn’t ‘arry recently In charge of Birmingham Probably just a coincidence that Bournemouth, West Ham, portsmouth, Southampton, qpr and Birmingham all got into financial trouble after employing him
pardonol
0
Supposed to be 12 next year with a further transfer ban and restrictions. We won the deduction cup.
funv
0
Could someone explain why to me why Birmingham can be docked points for breaching FFP, but whenever it’s mentioned in a conversation with Man City, it’s always that Man City would go to court with the best lawyers because they don’t have the right? Is it because of the different ways they have breached the rules? Couldn’t smaller teams use the same defence that Man City have/ will use?
opinion
0
make a break for it boys!!!
Spencerer
0
The main thing this does is throw another contender out of the playoff race. Worrying, because it means that it increases the likelihood of Pulis being in there.
license
0
To be honest this is probably better for them than having it slapped on at the start of next season. As much as it pains me to say it, they have enough quality to survive, whereas 9-points off at the start of the season would be crippling.
loosen
0
Excellent, now we need to put pressure on the PL to follow suit with Man City
Ellaalabt
0
Not as bad as I was expecting tbh
ukrainec
0
No way Rotherham are getting 5 more pts than them the rest of the season, they will be fine. 6 really with GD
Jeremiaher
0
Now do City and Chelsea
winterse
0
At least it's not 12 points but can't help but feel Birmingham ain't the only club that's failed recently. Many other clubs had higher wage to revenue ratios in recent years. A lot of Birmingham's losses came from "Player amortization" which I understand is like going into negative equity on a house. I wonder were they too honest with their accounts
oldesthle
0
Very happy with that considering the 12 that the EFL wanted. BBC WM also reporting that there are no transfer restrictions next season, although I will wait and see on that as it seems doubtful.