Stefan Borson drops verdict after Birmingham City owners make ‘very aggressive’ move
Birmingham City are a club firmly on the up under their ownership group led by Tom Wagner.
It was revealed last year Birmingham had purchased 60 acres of land in the east of the city to build a Sports Quarter.
Birmingham announced their plans to build a 62,000-seater stadium on 20 November as part of a multi-billion-pound redevelopment.
Wagner, who is the co-founder of ownership group Knighthead Capital Management, revealed the Birmingham City Powerhouse in Bordesley Green will be visible from 40 miles away.
Twelve chimneys will surround the ground, which will have a retractable roof and moveable pitch, allowing the facility to host different sporting and entertainment events.
Birmingham owners have made ‘ambitious’ plans
Former Man City financial adviser Stefan Borson exclusively told Football Insider the new stadium plans are “very aggressive” from the Birmingham owners.
Wagner is expected to invest £3billion as part of the plans, while the government has committed £2.4bn to improve the transport links in the West Midlands.
Speaking exclusively to Football Insider, Borson said: “There’s no such thing as too ambitious. I mean, if they can afford it and they’re prepared to fund it, then great. How they’re prepared to fund it or how the numbers stack up, I’ve got no idea.
“You’re looking at a stadium now that it looks to me like it’s going to cost a lot of money, definitely into the billions. With overshoots and everything else, it could easily be £1-2bn, so it’s very aggressive.
“But if they can afford it in terms of being prepared to put their hand in their pocket or to find the funders of it from people they know in the US, for example, and they can sell a story as to how it makes financial sense, then it’s better for Birmingham, both as a city and also as a club, to have that stadium.”
Birmingham have played at St Andrew’s since 1906, with the stadium boasting a capacity of 29,409.
Birmingham could face new stadium issue
Borson has questioned how Birmingham plan to fill the new stadium given the significant increase in capacity.
“Of course, it’s great infrastructure for the country,” said Borson.
“Whether it makes sense for Birmingham City to have 62,000 seats, I’d question how they fill those seats. It does not seem to me to have the necessary fanbase to fill 62,000 on a regular basis.
“But, as I say, it’s sort of separate from can they build it, will they build it? If they can, then great, they should build it. All of this sort of infrastructure for the UK is positive, especially where third parties are paying for it, i.e. American investors. That’s great.
“That’s all inward investment into the UK, and I don’t see any downsides. Now, can the club afford it? Well, I don’t see how, but that’s a different question.”
Birmingham are hoping to secure promotion to the Premier League this season, with Chris Davies’s side currently sitting eighth in the Championship table.
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