Peterborough United chairman embracing the challenge of having big-spending Birmingham City in League One

Jay Stansfield celebrates a goal for Birmingham City last season. (Photo by Harriet Lander/Getty Images)

Peterborough United chairman Darragh MacAnthony insists the challenge of having big-spending Birmingham City in League One should be embraced rather than feared.

The Blues, relegated from the Championship last season, have a reported £20 million transfer kitty, and they’ve not been afraid to dip into it.

Earlier this month they were linked with a £6 million bid for Fulham forward Jay Stansfield which, if successful, would smash the League One transfer record. Stansfield was on loan at St Andrews last season.

MacAnthony also revealed Birmingham have made four unsuccessful bids for Posh players this summer. It’s known they were interested in Harrison Burrows.

"Birmingham are blowing everyone out of the water financially,” MacAnthony admitted on his ‘Hard Truth’ podcast. “But good luck to them. This is the business we are in and if we were a club of that size it’s exactly what we would do.

"If they are bidding £6-7 million for Stansfield then fair play.

"They contacted Barry Fry about four of our players this summer, but Barry kept saying ‘no’ to them.

"But I honestly think, with the backing they have, they could do an Ipswich and get back into the Premier League never mind the Championship.

"Maybe not back-to-back like Ipswich, but certainly within four years I’d expect to see them back in the top flight.

"But we've gone up against big clubs in League One before and beaten them to promotion. It’s just another challenge for us.”

Birmingham have signed eight new players this summer and five have reportedly cost more than £1 million.

Sky Bet have cut Birmingham’s odds to 2-1 to win the League One title. Posh are 14-1.