Birmingham City’s owners, Knighthead Capital Management, are looking to expand their sporting portfolio as they continue to own the Championship team.

The Blues’ play-off ambitions were dashed on Wednesday when they were thrashed 3-0 by Millwall, who still have a chance to leapfrog Middlesbrough for an automatic promotion position.

Knighthead demonstrated their desire once more in the winter transfer window, adding noteworthy players like full-back Kai Wagner and winger Carlos Vicente.

Birmingham can recover from their defeat to Millwall when they visit an out-of-form Middlesbrough side at St Andrew’s on Monday.

Birmingham City owners are interested in acquiring a rugby union franchise.

Knighthead have shown themselves as good football owners in recent months, as Blues won the League One title with a massive 111 points last season and have gone on to establish serious Championship playoff credentials this season.

Meanwhile, The Times reported that Birmingham’s owners are considering bringing a Rugby Union franchise to the second city.

Last year, the group led by Tom Wagner purchased a 49 percent ownership in the Hundred cricket franchise Birmingham Phoenix, demonstrating that they are not afraid to diversify their portfolio in the West Midlands.

Interestingly, the announcement that Blues’ owners may bring a Rugby Union club to their city comes as the Rugby Premiership is due to break from the rest of the pyramid, according to BBC Sport.

Under the new system, English rugby would no longer have promotion and relegation between the Premiership and the Championship, and any club would be eligible to compete for a spot in an expanded top flight.

The sport’s highest tier intends to expand from ten to twelve clubs by 2030, and Knighthead may try to establish their future franchise in the new division.

According to the Times, Bill Sweeney, the Rugby Football Union’s chief executive, has already engaged with Birmingham’s owners about holding England matches in the West Midlands if the national stadium, Twickenham, becomes unavailable.

Back in December, The Guardian reported that the Blues’ projected 62,000-seater stadium could be shared with a top-tier rugby team.

Birmingham Moseley, Birmingham’s current highest-ranked club, plays in National League One, the third division.

Birmingham City need to get back on track to retain their Championship play-off ambitions.

Knighthead is interested in adding other sports teams to its portfolio, while Birmingham manager Chris Davies is focused on leading the Blues to the play-offs.

Before losing to Millwall, St Andrew’s had an eight-game unbeaten run in the Championship, with wins over Norwich City, Leicester City, and Oxford United.

However, Wednesday’s setback to the Lions means Davies’ side has now won just one of its past three second-tier games, drawing 0-0 with relegation-threatened local rivals West Bromwich Albion on February 10.

To keep their chances of finishing in the top six, the Blues must return to winning ways as soon as possible. However, eliminating automatic promotion contenders Middlesbrough on Monday will be easier said than done.

Birmingham can take heart from the fact that Boro are winless in three attempts, having drawn with both Oxford and Leicester following their defeat to title rivals Coventry City.