Porn baron David Sullivan may reckon sex shops are a dead business, but he's increasingly confident about his newspaper and football empire.

The Essex multi-millionaire, who owns Private Shops, the biggest chain of licensed sex stores in the UK, is toasting the health of the Daily Sport and Sunday Sport newspapers and Birmingham City FC.

Just weeks after Sullivan saved the ailing “sex and sensation” tabloids with an emergency loan, owners Sport Media Group today reported “an encouraging uplift in newspaper sales” in May and a steady stream of advertising revenues.

The newspapers, which Sullivan sold two years ago, were a week away from bankruptcy when he offered the £1.7 million loan, took share options of 9.9% and returned as honorary publisher.

It seems to have done the trick, and Birmingham City fans will hope Sullivan can have the same impact on the club's fortunes following its promotion to the Premier League.

Sullivan and business partner David Gold today loaned the Midlands club where they are directors £1 million each to help fund the refurbishment of its St Andrew's stadium and buying players.

However, the deal made a takeover of his beloved West Ham United ever more unlikely.