Source: Telegraph
Birmingham owners to make compensation claim against former owner David Sullivan
Grandtop International Holdings, the investment vehicle used by Hong Kong businessman Carson Yeung to purchase the club, was last week sued by the London-based investment bank and stockbrokers Seymour Pierce over an unpaid advisory "success fee" based on an agreement made in 2007 when the bank was appointed to advise Grandtop on buying the football club.[LNB]According to Vico Hui, the Birmingham City chairman and the chief executive of Grandtop - now known as Birmingham International Holdings - the company will appeal the decision, but first they will return to the High Court in an attempt to gain compensation in excess of £5 million for the state of the finances they inherited from Sullivan after their takeover in October.[LNB]Footballs deal-maker Keith Harris warns on Premier League financesSales kick off as clubs feel the pinchTheir writ, which was filed on Tuesday at the Royal Courts of Justice, amounts to the first genuine salvo of what has until now been only a verbal conflict, which began when Yeung initiated an investigation into the club's finances which discovered that Sullivan and Gold had paid themselves £420,000 in management fees for the year ahead before departing. Yeung and his advisors rejected Sullivan's and Gold's offer to refund the fees.[LNB]However, Birmingham's legal action will not be taken lying down. Sullivan has already announced his intention to return fire by counter-suing for 'several million' in unclaimed expenses. [LNB]He explained: 'Unfortunately as they started it we'll be issuing writs ourselves. We'll be counter-suing for several million. I don't think it is right for people in football to sue each other as it is not good for either club. Right from the start we tried to find a way to resolve this amicably. Now the only gainers will be the lawyers.'[LNB]
