Coventry City Football Club (Otium Entertainment Group) has published the latest set of accounts for the year ended 31 May, 2019.
This period was the first season after the Sky Blues had been promoted back to League One.
The financial statements of the Football Club show a profit for the first time in a number of years of £69,916 before tax, compared to a loss of £2,515,057 in 2018.
In order to help fans understand the information contained within the documents that have been filed, please find below the key points from the Coventry City Football Club (Otium Entertainment Group) accounts:
- The total Club turnover during this period was £6,262,072 – up by £289,658 from £5,972,414 in 2018.
- The operating loss of the Club increased by £599,197 – from £1,616,359 in 2018 to £2,215,556 in 2019. This was a direct consequence of administrative expenses increasing by £971,205 – this arose mainly through two areas: increased employee costs and higher player amortisation costs, both as a result of promotion to League 1.
- Wages and salaries to 31 May 2019 increased from the previous year, from £3,988,263 to £4,676,724 – an increase largely as a result of increased employee costs as a result of promotion to League 1.
- There was an increase of interest payable from £1,872,283 (2018) to £2,095,626 (2019) - the value in the accounts is predominately accrued interest not paid.
- The profit on sale of players increased from £973,545 (2018) to £4,381,086. This included fees from the sale of James Maddison by Norwich City to Leicester City, and of Marc McNulty to Reading, and was used to offset the operating losses of the Club. Meanwhile, there was over £800,000 of player transfer fees paid, inclusive of the additions of Conor Chaplin and Amadou Bakayoko.
- The Football Club has net liabilities of £19,763,720 – the Club has received written confirmation from the Shareholder of their intention to continue to provide support to the company by not demanding repayment of loans owing to them for the foreseeable future, and to continue to provide or source funding for the Club.
Coventry City Chairman Tim Fisher commented:
“The accounts show that for the first time in many years, and unusually among many Football Clubs, the Club has shown a small profit in its accounts for the period to 31st May 2019.
"That was as a result of profit on sales of James Maddison and Marc McNulty, offsetting the operational losses of the Club.
“Operating costs increased as we moved up to League One and invested in the playing squad and the support structure for it, resulting in an 8th place finish in League One last season and other improvements at the Club. At the same time, our revenues increased.
“The Football Club continues to have significant liabilities to the Owners SISU, however the Football Club has received written confirmation from the Owners of their intention to continue to provide support to the Football Club and to not demand repayment in the foreseeable future.
“It was a positive first season back in League One, and we are making further progress this season and are looking forward to what we hope will be an exciting finish to the campaign.
“I would like to thank all of the Coventry City supporters who have provided their backing for the team, our sponsors and partners for their support, and the players and staff at the Football Club for their ongoing hard work too.”
Fisher added:
“As mentioned in the accounts, the board continues to explore the possibilities of a return to Coventry as soon as we are able to – it is our home, the City we are proud to represent and the place that everyone agrees that we should be playing.
“However, in the absence of any agreement being reached for a return, would seek to implement the option to continue the ground share at St. Andrew’s to ensure the fulfilment of our fixtures.”
Click here to view the Coventry City Football Club (Otium Entertainment Group Limited) Accounts.
The accounts of Sky Blue Sports & Leisure Limited, which is the parent company of Otium Entertainment Group Limited trading as Coventry City Football Club, have also been published today.
Click here to view the accounts of parent company Sky Blue Sports & Leisure Limited.