Birmingham Arrests Focus on Agent and Player Payments

The corruption investigation which led to the arrest of Birmingham City executives Karren Brady and David Sullivan is focusing on payments to a football agent and two players, the club has revealed.

"The City of London police investigation is focusing on payments to a football agent and two players dating back to 2002-03," said a statement released by Birmingham today. "There is absolutely no allegation that any director of the company or the club itself has benefited financially from any of this activity."

Earlier, shares in Birmingham City were suspended on the London stock exchange as part of the police inquiry. Trading in the club's shares was halted "pending an announcement", after it emerged that managing director Brady and co-owner Sullivan had been interviewed by police.

Brady, 39, and the 59-year-old Sullivan were questioned and bailed by officers from the economic crime unit, who raided the club's offices last month. At the time, Birmingham officials denied anyone associated with the club was under suspicion. But the club confirmed last night the pair were interviewed by appointment and were happy to cooperate with police.

Detectives from City of London police investigating alleged corruption in English football made seven arrests as part of the same inquiry last November.

A Birmingham spokesman said that the club was "fully committed" to helping police with their inquiries. "David Sullivan and Karren Brady, on behalf of Birmingham City, were invited to cooperate with a City of London police investigation and have happily done so," he said. "By long-standing appointment, they have willingly attended interviews today. [We are] fully committed to helping the police with their inquiries. For the avoidance of doubt, no charges have been brought. We have been requested by the police not to comment further whilst their inquiry is ongoing."

Brady became the UK's youngest managing director when Birmingham floated on the stock market in 1997. She is also chairman of Kerrang! magazine and non-executive director of Channel 4, Mother care and Sport England. Sullivan, the multi-millionaire former proprietor of the Daily Sport and Sunday Sport, co-owns Birmingham with brothers David and Ralph Gold.

Brady made no comment as she left her home in Knowle, Solihull, shortly before 8am today. Dressed in a dark suit, Brady left the gated property at the wheel of a black 4x4 Porsche.

A short statement issued by the stock exchange's "Aim" index read: "At the request of the company trading on Aim for the under-mentioned securities has been temporarily suspended from 7.30am, pending an announcement." Shares in the company had been selling for 35.5p until the suspension announcement which came half an hour before the start of trading.