Brady and Sullivan arrested

Birmingham managing director Karren Brady and co-owner David Sullivan were arrested by police investigating alleged corruption in English football, sources said on Wednesday night.

The arrests follow last month's raids on the Barclays Premier League club as part of an ongoing inquiry by the City of London Police's economic crime unit.

Detectives confirmed they questioned a 59-year-old man and a 39-year-old woman on suspicion of conspiracy to defraud and false accounting.

They were released on bail, police confirmed.

A further seven people, believed to include Portsmouth boss Harry Redknapp, remain on bail in connection with the inquiry.

A statement from Birmingham read: "David Sullivan and Karren Brady on behalf of Birmingham City Football Club were invited to co-operate with a City of London Police investigation and have happily done so. By longstanding appointment, they have willingly attended interviews.

"Birmingham City is fully committed to helping the Police with their enquiries."

Brady, 39, became the UK's youngest managing director when Birmingham City floated on the stock market in 1997.

She is also chairman of Kerrang! magazine and non-executive director of Channel 4, Mothercare and Sport England.

Sullivan, 59, the multi-millionaire proprietor of the Daily Sport and Sunday Sport, co-owns Birmingham with brothers David and Ralph Gold.