Birmingham PLC have suspended their stock market shares following the arrests of co-owner David Sullivan and managing director Karren Brady.

Birmingham City FC’s managing director Karren David Sullivan were arrested on suspicion of conspiracy to defraud and false accounting yesterday.

Brady and Sullivan were quizzed by police for over 5 hours and Sullivan’s mansion was searched.

A statement by the club read:

We wish to clarify the situation regarding the City of London Investigation.

The City of London Police investigation is focusing on payments to a football agent and two players, dating back to 2002/2003.

There is absolutely no allegation that any Director of the Company or the club itself have benefited financially from any of this activity.

In so far as there may be any implications for the Company, these are not considered material to its financial affairs and they are in relation to the payment, or possible non payment of PAYE and National Insurance contributions.

The club and its Directors are co-operating fully with the police in this investigation and will continue to do so.

For the avoidance of doubt we wish to make it plain that David, Karren and Birmingham City FC deny absolutely any wrong doing.