Birmingham City are preparing for a substantial increase in losses following former boss Harry Redknapp’s summer spending spree and the subsequent sacking of the former Portsmouth manager, writes The Birmingham Mail.

The club, which are floated on the Hong Kong Stock Exchange, have informed investors of their expected increase in losses.

The Blues signed fourteen players last summer including Jota, Maxime Colin and Harlee Dean from Brentford, and have blamed Redknapp’s expenditure of their reported losses.

"The increase in loss was mainly due to the increase in operating costs,” a statement from Birmingham Sports Holdings Limited read.

“(This is) largely attributed to the higher spending on players’ registration and staff costs as a result of the change of the club manager and signing in of a number of new players during the season with an aim to strengthen the competitiveness of the football club."

The Verdict

The board at St Andrew’s backed Redknapp with all of the financial resources available to the club last summer, with their project seriously backfiring just weeks into the new campaign.

New boss Steve Cotterill may have dragged the Blues out of the relegation spots for now, but with the club still in serious danger of the drop, Birmingham’s finances could still grow a lot worse.

Fans will be concerned by this troubling update, and will hope the backing of owner Paul Suen continues for the foreseeable future.

Blues fans, let us know your thoughts!