Blues: Police probing agent payments

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Shares in Blues were suspended on the London Stock Exchange on Thursday after it emerged managing director Brady and co-owner Sullivan had been interviewed and bailed by police on Wednesday.

But the club has distanced itself from any possible wrongdoing and said in a statement: "There is absolutely no allegation that any director of the company or the club itself has benefited financially from any of this activity."

The statement continued: "The City of London Police investigation is focusing on payments to a football agent and two players dating back to 2002-03.

"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.

"The club and its directors are co-operating fully with the police in this investigation and will continue to do so.

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

Detectives from City of London Police investigating alleged corruption in English football made seven arrests as part of the same inquiry last November.

Among those believed to have been arrested in November are Portsmouth boss Harry Redknapp, chief executive Peter Storrie, former chairman Milan Mandaric, former player Amdy Faye and agent Willie McKay.