Birmingham have been docked nine points after breaching financial rules, the EFL has announced.
The Sky Bet Championship side breached the English Football League’s profitability and sustainability regulations and faced a possible 12-point deduction and a transfer ban.
The penalty sees the club drop from 13th in the table to 18th, leaving them only five points above the relegation zone.
An independent disciplinary commission heard the case on Monday and decided Blues should not be given the maximum penalty.
EFL statement: Birmingham City.https://t.co/tJbtQnJCOf#EFLpic.twitter.com/3Mqxq9zgFe— EFL (@EFL) March 22, 2019
An EFL statement read: “The Profitability and Sustainability Rules, aligned with those in the Premier League, became effective in 2015/16.
“Season 2017/18 was the end of the first full reporting period, with Birmingham City the only club found to have breached those requirements, when it incurred adjusted losses of £48.787 million, £9.787 million in excess of the permitted losses.
“The Disciplinary Commission had the opportunity to consider all relevant factors in reaching its determination, including the club’s mitigation.”
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