Blues Trust can today confirm that it has been in continual discussions with key Birmingham International Holdings shareholders with respect to Birmingham City’s kit sponsorship deal with Xtep.

The Xtep kit deal had been highlighted by Trust members as one of a number of key issues needing to be addressed. In line with our committed aim of promoting openness and transparency, Blues Trust requested information with respect to the Xtep kit deal. However, due to confidentiality constraints, it is regrettable that Blues Trust is unable to directly publish the information it has received.

Blues Trust can confirm that it has been made aware of evidence that both deals signed with Xtep – the original kit sponsorship deal and the secondary “counter-deal” relating to advertisement – were signed off by the board of BIHL, including Club President Carson Yeung, and that directors were aware of the content of both deals.

The Trust can also confirm that it has been made aware of evidence that outlines the original terms of the first deal, which confirms the arrangements of the contract – chiefly with respect to how the Club was to promote Xtep and an agreement on how much money Birmingham (Hong Kong) were to receive in fees – for the promotion of a BCFC-Xtep brand.

Furthermore, the Trust can confirm that no money was paid by Birmingham (Hong Kong) to Birmingham City Football Club for the intellectual property rights with respect to the Club’s badge. Thus, the Trust can conclude on the evidence provided that the Club received no income from the kit sponsorship deal. The Trust understands that no money has been paid to Birmingham (Hong Kong) with respect to sales of “BCFC-Xtep” branded clothing and merchandise; and that contrary to the agreement with Xtep, the Trust understands that Birmingham (Hong Kong) exerted no control over any designs of the usage of the Club’s badge and/or name in Xtep branded clothing.

Blues Trust also understands that there are still a number of legal issues with respect to the termination of the agreement with Xtep and, as such, the situation relating to outstanding payments is yet to be resolved.

Blues Trust is continuing to analyse further information received from its contacts and hopes to issue further updates in due course.

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