Birmingham City sold their women’s team to Shelby Companies Ltd as part of a club reform.

According to Birmingham Live, the Blues have reached an agreement with the holding company owned by Knighthead Capital Management, which owns the Championship side.

Chelsea and Aston Villa have previously made this move in recent years, with their club owners completing a deal with themselves to earn revenue.

Birmingham return to the second tier this season after a year of significant expenditure in League One, including a record-breaking £15 million deal to buy Jay Stansfield from Fulham.

The Midlands club hopes to return to the Premier League for the first time since being relegated in 2011.

Birmingham completes women’s squad sale amid potential financial rule problems.

Birmingham has sold their women’s squad to Knighthead Capital’s holding firm, thereby closing a transaction with themselves.

The acquisition is expected to have little influence on the women’s team’s day-to-day operations.

However, the cost of the transaction can be recorded in the club’s books as revenue produced, thus improving their capacity to comply with the profit and sustainability regulations (PSR).

It is unclear how much they valued the women’s squad, but Chelsea sold for £200 million in 2025.

The Birmingham women’s team presently competes in English football’s second division, although owners Knighthead Capital have invested in the squad in the same way they do in the men’s side.

They are currently second in the table and will compete for promotion to the Women’s Super League this season.

Meanwhile, Chris Davies’ squad is 11th in the Championship, and they are also aiming for promotion, with only two points separating them from the playoffs.

Birmingham is taking advantage of financial gaps

Chelsea and Aston Villa were heavily criticized for selling their women’s teams in this manner, although it helped them comply with the financial regulations and was entirely legal.

Birmingham appears to have followed suit, which could be beneficial in their efforts to remain in compliance with the rules.

This will not have a significant influence on the women’s or men’s teams in the short term, but it may allow for more investment in the first team squad over time.

Birmingham’s newest signing demonstrates their commitment to investing in the club, with their sights set firmly on the big time.