Coventry City Football Club has published the latest set of accounts for the year ended 31 May, 2020.
We can confirm that the accounts were submitted on Thursday in line with the Government extension to submit, and the EFL have subsequently removed the transfer embargo on the Club.
The period of the accounts includes the first three months of the Coronavirus pandemic and displays the initial impact of this on Coventry City Football Club.
This accounting timeframe contains the season when the Sky Blues were crowned as League One Champions to earn promotion to the Sky Bet Championship, while also groundsharing at St Andrew’s.
The financial statements of the Football Club (Published under the company name Otium Entertainment Group) show that the Club made an overall loss for the financial year of £3,385,242, in comparison to a profit the previous year of £69,916.
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 £5,103,493 – down by £1,158,579 from £6,262,072 in 2019. This decrease was expected due to the groundshare and lost match receipts due to the curtailment of the season.
- Administrative costs increased by £2,061,084 – from £6,977,719 in 2019 to £9,038,803 in 2020. This was due to a combination of facility hire fees at St Andrew’s and an additional £1.276m of player expenditure and player amortisation costs.
- The operating loss of the Club was £4,910,397 in 2020 compared to £2,215,556 in 2019.
- Wages and salaries to 31 May 2020 increased from the previous year by £1,076,154, from £4,839,886 to £5,916,040 – an increase largely as a result of investment into the playing squad, as the Club successfully achieved promotion to the Championship.
- The interest payable during the period increased from £2,095,626 in 2019 to £2,293.749 in 2020. The value in the accounts is predominately accrued interest, not paid.
- The profit on sale of players decreased from £4,381,086 (2019) to £3,818,867. Player sales during this period included Conor Chaplin (Barnsley), Tom Bayliss (Preston North End) and Sam McCallum (Norwich City).
- The Football Club has net liabilities of £22,901,262 – 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.
The accounts acknowledge that in order for the team to remain competitive, significant investment is required on an on-going basis in both financial and non-financial terms. It is also stated that ‘this investment needs to be balanced with the most important Board responsibility, which is to maintain a financially secure professional football club.’
The accounts also note the new 10-year agreement to play at the Ricoh Arena, announced in March 2021, and the Club progressing plans for the building of a new stadium, in partnership with the University of Warwick.
Coventry City Chairman Tim Fisher, director of Otium Entertainment Group, commented:
“We are pleased to present these accounts to supporters and confirm that they have been submitted to Companies House.
“The accounts show the initial impact that the Coronavirus pandemic has had on our football club, and we will continue to manage the effects of this on an on-going basis.
“However, these accounts cover the first three months of the pandemic and do not reflect the full impact of the pandemic and the 2020/21 season being played behind closed doors. This will be reflected in our next accounts.
“While in our previous year our accounts showed a small profit after playing trading, in the circumstances an overall loss of £3,385,242 was to be expected.
“Costs during the period to 31st May 2020 increased, as a result of our groundshare agreement at St Andrew’s and notably the increased investment in our playing squad.
“The investment to support Manager Mark Robins and create a competitive squad was instrumental in us winning the League One title and our richly deserved promotion to the Sky Bet Championship.
“It was a very positive season on the field and the achievement of winning the league title and promotion cannot be underestimated, and I would like to pay tribute to everyone involved.
“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.
“I would like to thank all of the Coventry City supporters who have provided their backing for the team throughout this period and again this season, and our sponsors and partners for their support.
“I would also like to thank the players and staff at the Football Club for their ongoing hard work too in difficult circumstances.
“We all look forward to the 2021/22 campaign with our supporters, again in the Championship and back in Coventry.”
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 submitted to Companies House. These can be viewed here.