Birmingham City docked nine points

Birmingham City have been handed a nine point deduction for breaching Profitability and Sustainability rules.

It is understood that the club exceeded the £39 million allowable losses over a three-year period. The accounts for the 2017-18 season showed a loss of £37.5 million.

The deduction handed down by the EFL is to take effect immediately and will leave the Midlands club just five points above the relegation zone.

Prior to the deduction, Birmingham sat in 13th in the Championship on 50 points, seven points off the promotion places.

A “soft embargo” has also been placed on the club. This means all major financial issues have to be agreed in advance by the EFL.

It is understood that the EFL felt there was no clear attempt by Birmingham to reduce their spending and the club losses.

The club are also facing an investigation into the signing of defender Kristian Pedersen who was brought in when the club was still under the “soft embargo” in June 2018.

Reports suggest the Blues feel harshly treated by the ruling.