Blues deny Brady wrongdoing

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Brady, 39, was questioned by City of London Police and released on bail as part of an ongoing investigation into conspiracy to defraud and false accounting. She was first arrested last April, along with the club's co-owner David Sullivan.

A statement on the Coca-Cola Championship side's website read: "Birmingham City would like to confirm that Karren Brady has not been charged with anything and vehemently denies any wrongdoing."

The statement continued: "The new 'arrest' as stated by the police this evening (Tuesday) relates to exactly the same two players that both David Sullivan and Karren Brady have already been arrested and questioned for and it simply confirms the police are alleging PAYE and NI offences in relation to these two players.

"In the fullness of time we believe the public will see that no offence has been committed by anyone at BCFC.

"The club continues to assist the police with their enquiries and have answered every question put to them."

City of London police earlier refused to reveal details of the offence, saying they "have been working with HM Revenue and Customs from the outset of the investigation".