Birmingham City have been handed a suspended two-point deduction by the English Football League for breaching the rules during an unsuccessful takeover bid.
The deduction is suspended until the end of the 2023-24 season.
The Blues were first charged after ‘a thorough investigation’ in February.
The EFL said the owners and directors test had been breached after the club “allowed a number of people to fall within the definition of a relevant person and gain control of the club without ‘EFL prior approval’.
He continued: “These individuals received sanctions last month and the club have now reached an agreed decision with the EFL which includes the suspended sporting sanction and liability for costs associated with the investigation.
“Furthermore, Birmingham City owner Mr Vong Pech has made an agreed decision with the EFL after he admitted a breach of EFL regulations when he allowed these people to acquire control of the club. without the prior approval of the EFL.
“Mr. Vong Pech has been given a warning and a reprimand, and is required to pay the investigation costs.”
There was an approach to acquire ownership of the club by Paul Richardson and Maxi Lopez, which ended in December, and separate negotiations with potential investorsbut the EFL has not confirmed the identity of those involved in the case.
The Blues are owned by Chinese company Birmingham Sports Holdings Limited since 2016.
They bought the club as Trillion Trophy Asia after Carson Yeung’s tenure to become the Blues’ second successive ownership in Asia.
The potential new co-owners – the hedge fund managers – are to buy 24% of the shares in parent company Blues Birmingham Sports Holdings Limited, plus 21.64% of the shares that will transfer from Oriental Rainbow Investments and Achiever Global Group.
Wagner’s company, Shelby Companies Limited, will also take possession of St Andrew’s, the club’s home since 1906.
City, the longest survivor in the Championship, finished 17th last season in their 12th successive campaign at the second tier – their first under head coach John Eustace – nine points clear of the fall.
