Birmingham City’s PSR Gamble: Is Heavy League One Spending Paying Off?
Blogs

Birmingham City’s PSR Gamble: Is Heavy League One Spending Paying Off?

Birmingham City's PSR Gamble: Is Heavy League One Spending Paying Off?

When Knighthead Capital and Tom Brady took over at Birmingham City in 2023, their primary goal was to reach the Premier League as quickly as possible, regardless of the cost.

However, what the new American owners would not have planned for is relegation. Not only because relegation is not a thing in US sports, but because these new owners are serial winners in everything they put their name to.

Those who have watched the new Birmingham docu-series on Amazon Prime have been privy to the cut-throat, win-at-all-cost mentality that has been brought to St Andrews. A fascinating insight into the ambition of the owners, and the mammoth task that stands in their way.

After their relegation, the sums of money being handed out were unlike anything ever seen in League One, and whilst it delivered the main aim, promotion, we analyse if that risk has paid off.


The League One Hail Mary

In recent times, we have witnessed huge clubs tumble down the football pyramid; all it takes is a bad season or two. This is something that the higher-ups at Birmingham City knew and were keen to avoid. They had to throw everything at getting out of League One at the first attempt, or suffer the fate of other fallen giants.

New manager Chris Davies took over after Wayne Rooney's ill-fated tenure and was given a straightforward aim: to get back into the Championship.

To achieve this, the Blues threw everything at the transfer market. They broke the league transfer record three times in a single window, including the transfer of Jay Stansfield from Fulham, which is reported to have cost between £15 million and £20 million.

That summer, Birmingham's transfer spend accounted for approximately 63% of the entire league's spending.

This gung-ho approach, unsurprisingly, worked. Davies' side obliterated the single-season record for points total with 111, with many suggesting that their squad was already befitting of a Championship side.


How Can Birmingham Afford To Spend So Much?

The financial rules in League One are very different from what clubs face at higher levels. Instead of the strict Profit and Sustainability Rules in the Championship, League One follows something called the Salary Cost Management Protocol (SCMP). In simple terms, clubs can spend up to 60% of their turnover on wages and transfers (50% in League Two).

The key difference, though, is that owner investment doesn't count towards that limit. So when Knighthead put money in, Birmingham could pretty much use it all on building the squad.

This meant that Birmingham was able to construct a Championship-level squad under more lenient rules, and now in the Championship, they can add more quality while adhering to the league's rules.


This Summer's Business

As expected, the spending hasn't stopped at St. Andrews, with further quality signings being added to Chris Davies' side throughout the current transfer window.

In terms of outgoings, there have been a few that leave a void in the starting side, and the incomings have added further quality.


Screenshot 2025-08-29 at 16.56.36-min.png Birmingham City 2025/26 - Transfer Incomings (Transfermarkt)


Some of the notable signings have slotted straight into the side, including Kyogo, Osayi-Samuel and ex-Blue Demarai Gray. Brady and Co. will be delighted with the start to the season, with seven points from their first nine, and they sit in 5th place.


Is The Gamble Paying Off?

From the outside looking in, it seems as though Chris Davies and his side are executing Knighthead's vision perfectly. On the pitch, they have started in great form and boast a squad that is capable of dealing with the rigours of a long, long Championship season.

Off the pitch, the club appears to be in a very healthy financial position, and the infrastructure, specifically St. Andrews, has been heavily invested in.

And finally, the fans, after years of mismanagement at the top. The Birmingham faithful are finally happy with their owners, and they have adopted this winning mindset.

Birmingham certainly looks to be on a good trajectory. Could we see them back in the Premier League soon?

Benji Kosartiyer
Journalist

Jordan Benford

Freelance Football Writer

Videos
See more
Argentina's Massive Talent Pool | Off The Bar Podcast Episode 4 ft. Nacho Z
Seb & Colin Welcomes their first guest ‪@soynachoz‬ where they chat all things South American Football | Off the Bar Podcast Episod
Gyokeres Already a Failure? | Off The Bar Podcast Episode 3
Is Gyokeres already a flop? 🤔 VAR in the Championship & the West Ham Situation | Off The Bar with Colin & Seb Episode 3
Olise to win the next Ballon D'or | Off The Bar Podcast Episode 2
Did Dembele Deserve the Ballon D'or? 🏆 Olise the next winner? & players mental health! | Off The Bar with Colin & Seb Episode 2

Join our newsletter

Become a part of our community and never miss an update from Football Park.