Birmingham City corruption probe

Payments to an agent and two players resulted in the arrest of Karren Brady and David Sullivan, Birmingham City football club has said.

Trading in the club's shares was halted after it emerged that managing director Brady, 39, and co-owner Sullivan, 59, had been interviewed by police.

Brady and Sullivan were questioned and bailed by officers from City of London's economic crime unit, who raided the club's offices last month.

Today, the club said in a statement: "The City of London Police investigation is focusing on payments to a football agent and two players dating back to 2002-03.

"There is absolutely no allegation that any director of the company or the club itself has benefited financially from any of this activity."

A spokesman from the club said earlier: "David Sullivan and Karren Brady, on behalf of Birmingham City Football Club, were invited to cooperate with a City of London Police investigation and have happily done so. Birmingham City Football Club is fully committed to helping the police with their inquiries."

It added: "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 non-executive director of Channel 4, Mothercare 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.

A short statement issued by the London 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 10/04/2008 7.30am, pending an announcement."

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