Birmingham could lose spot

The paper claims that Alex McLeish side could be denied a licence to play in Europe next season if they cannot convince the Premier League and the FA that their finances are not a major cause for concern.

"The Premier League is set to hold discussions with the Birmingham board this month before deciding in conjunction with the FA whether they should be granted a UEFA licence and allowed to play in the Europa League, for which they qualified after winning the Carling Cup," states the paper.

Before last season's FA Cup final with Chelsea, Portsmouth were told they would not be granted a European place even if they won the Cup due to their perilous financial state.

The Guardian admits that: "Birmingham's situation is far different" but adds "there are genuine concerns at the Premier League, who have additional reasons for wishing to ask questions of the St Andrew's board.

"The Premier League wish to learn more information about Birmingham's financial position, the ownership structure at the club and recent share activity," the paper adds.

A spokesman for the Premier League said: "Under our financial criteria all the clubs have to submit future financial information. There are a number of triggers that would result in us taking a closer look at a club's financial circumstances, such as an 'emphasis of matter' (eg a doubt on the club's ability to continue as a going concern) on the accounts. This could result in measures being placed upon a club to ensure its sustainability going forward."

Last month Birmingham's acting chairman Peter Pannu insisted the club were financially stable and revealed owner-president Carson Yeung has injected another £4 million into the Midlands club.

That investment was described as "the first step of a continued planned injection of funds to facilitate the club's operations.

"Carson has done so (injected more funds) to show his unfailing support for the club," Pannu added.

"It is also to quell recent media reports raising financial uncertainty against the club which came as a result of journalistic-induced scaremongering."

Birmingham currently lie 16th in the Premier League table, just three points off the relegation zone.