US hedge fund manager Tom Wagner, the co-founder of Knighthead Capital Management, which oversees about $9 billion and focuses on event-driven investing and distressed credit, has had his takeover of Birmingham City FC apportioned by the English Football League (EFL).

Knighthood Capital Management-owned Shelby Companies Limited, last month agreed a deal to buy 24% of the club's shares from Birmingham Sports Holdings (BSHL) and an additional 21.64% from Oriental Rainbow Investments Limited, and Achiever Global Group Limited, for a consideration of about £5.3 million ($6.7 million) in cash, along with a series of subsequent payments if Birmingham City FC is promoted to the English Premier League and remains there in its first two seasons, according to a regulatory filing. 

As well as the club, Shelby is also acquiring City Stadium Limited, owner of The Blues' St Andrew's stadium.

The deal is still subject to approval from the Hong Kong Stock Exchange, where BSHL is listed.

Birmingham City FC last played in the Premier League in the 2010-2011 season, and finished last season in 17th place in the Championship, the second-tier of English football. The club reported a pre-tax loss of £24.8 million for the year ended June 2022.