Two of the most colourful characters in English football were arrested yesterday by police investigating alleged corruption in the game. David Sullivan, the Birmingham City co-owner, and Karren Brady, the club’s managing director, were questioned by City of London Police on suspicion of conspiracy to defraud and false accounting. It is understood that the transfer of Aliou Cissé from Birmingham to Portsmouth in 2004, handled by Willie McKay, the agent, is at the centre of the investigation.

“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,” the Barclays Premier League club said in a statement last night. “By longstanding appointment, they have willingly attended interviews. Birmingham City is fully committed to helping the police with their inquiries. For the avoidance of doubt, no charges have been brought. We have been requested by the police not to comment further whilst their inquiry is ongoing.”

This morning Birmingham City plc said it had asked for its shares to be temporarily suspended “pending an announcement”.

Last November, officers arrested a series of high-profile figures in the game in a series of raids. Among them were Harry Redknapp, the Portsmouth manager, Peter Storrie, the Portsmouth chief executive, Milan Mandaric, the Leicester City chairman, Amdy Faye, the former Portsmouth player, and McKay. Last month, detectives raided Birmingham’s offices as part of the inquiry. Officials at St Andrew’s insisted that they were assisting officers in their pursuit of parties with no direct association to the club.

Cissé, initially brought to England from Montpellier in a £1.5 million deal in 2002, left Birmingham for Portsmouth in August 2004. Having fallen out with Steve Bruce, the Birmingham manager at the time, the Senegal player was on the verge of joining Crystal Palace on loan when Portsmouth, managed by Redknapp, signed him for £300,000.

Sullivan has a fortune of about £600 million, a property empire and the largest chain of sex shops in the UK. After making his fortune in the adult entertainment industry and owning the Daily Sport and Sunday Sport newspapers, Sullivan invested in Birmingham 15 years ago, when he saw the club advertised for sale in the Financial Times.

Birmingham had fallen on hard times and were bottom of the second tier in English football when Sullivan arrived, but after being frustrated in his attempts to buy West Ham United and turning his nose up at Cardiff City, Watford, Bradford City, Leeds United and Tottenham Hotspur — “I could have had Spurs for £3 million, but they were £25 million in debt,” he said — he and his partners, David and Ralph Gold, handed over £1.2 million and transformed the club’s fortunes.

His love affair with the club looked as if it was over last year when he agreed to sell to Carson Yeung, the Hong Kong businessman, but he stayed at the club, with David Gold, the chairman, when Yeung failed to go through with the deal before Christmas.

Brady hit the headlines when she became the managing director of Birmingham at the age of 23, in 1993. She is married to Paul Peschisolido, the former Birmingham forward, is a non-executive director of Channel 4 and Mothercare and has a seat on the board of Sport England. She became the youngest managing director of a UK plc when the club were floated on the Stock Exchange in 1997.

McKay, who represents several Birmingham players and is believed to have close links with Sullivan, was arrested in November — he was not charged — as part of Lord Stevens of Kirkwhelpington’s Quest inquiry into alleged “bungs” in the game.

“I don’t need to clear my name,” McKay told The Times. “The Quest investigation has followed all the paperwork through and cleared me of any wrongdoings on transfers.”

Bungs, lies and videotapes: how did it all come to this?

2006

Jan 11 Mike Newell, the Luton Town manager at the time, criticises agents and claims that offers of illegal payments are not uncommon.

Jan 18 Newell meets FA to discuss his claims.

Jan 24 Premier League announces inquiry into alleged bung payments.

Mar 3 Lord Stevens of Kirkwhelpington, the former Metropolitan Police Commissioner, is appointed head of Premier League inquiry. His team examines 362 transfers between January 1, 2004 and January 31, 2006.

Sept 19 A BBC Panorama investigation alleges that Sam Allardyce, the Bolton Wanderers manager at the time, received illegal payments. The programme also claims that his son, Craig, and other agents, Peter Harrison, Teni Yerima and Charles Collymore, were involved in bungs. It was also suggested that Harry Redknapp, the Portsmouth manager, Kevin Bond, his former assistant, Chelsea and Liverpool were involved in corruption.

Oct 2 Stevens announces that the inquiry has been narrowed to 39 transfers involving eight clubs.

Oct 4 BBC begins handing over Panorama evidence to the FA.

Dec 20 Stevens announces findings of inquiry: 17 transfers require further investigation because eight agents have failed to co-operate.

2007

Mar 7 A report by Stevens identifying clubs breaking or ignoring rules on more than 50 of the transfers investigated is given to the Premier League.

June 8 It is announced that a 61-year-old man had been arrested in May on suspicion of money laundering.

July Police search Newcastle United, Portsmouth and Rangers, as well as two homes, during raids.

Sept Pascal Chimbonda, the Tottenham Hotspur defender, is questioned.

Nov 28 Portsmouth confirm that Peter Storrie, the chief executive, and Redknapp are two of five men arrested by police investigating corruption. No charges have been brought.

2008

Mar 19 Police launch raid on Birmingham City. The club announce that none of their employees was implicated.

Apr 9 David Sullivan and Karren Brady arrested.

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