Corruption probe 'on agent payment'

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Shares in the club were briefly suspended on the London Stock Exchange earlier after it emerged that managing director Karren Brady and co-owner David Sullivan had been interviewed by police.

Brady, 39, and Sullivan, 59, were questioned and bailed by officers from City of London Police's economic crime unit, who raided the club's offices last month.

The club said in a statement: "The City of London Police investigation is focusing on payments to a football agent and two players dating back to 2002/2003."

The statement, released to "clarify the situation", continued: "In so far as there may be any implications for the company, these are not considered material to its financial affairs and they are in relation to the payment, or possible non payment of PAYE and National Insurance contributions.

"For the avoidance of doubt we wish to make it plain that David, Karren and Birmingham City FC deny absolutely any wrong doing."

Ms Brady, 39, became the UK's youngest managing director when Birmingham City floated on the stock market in 1997.

She is also non-executive director of Channel 4 and Sport England.

Leaving her home in Knowle, Solihull, for work this morning, she made no comment.

Mr Sullivan, 59, the multi-millionaire former proprietor of the Daily Sport and Sunday Sport, co-owns Birmingham City with brothers David and Ralph Gold.