Coventry City Football Club has published the latest set of accounts for the year ended 31 May, 2021.
The accounts were filed with Companies House on Friday afternoon.
The period of the accounts includes the 2020/21 season played behind closed doors and displays the impact of this on Coventry City Football Club, as well as that of the Club’s first season back in the Sky Bet Championship.
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 £4,731,201, in comparison to a loss the previous year of £3,385,242. This loss was not unexpected, due to the increased costs of investment in the playing squad following promotion.
However during the period, the operating loss reduced by around £476k compared to the previous year – a remarkable feat considering the effect on ticket and other revenue of behind-closed-doors fixtures and lockdown.
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 £11,847,727 – up by £6,744,234 from £5,103,493 in 2020. While there were no gate receipts, this increase was due to increase broadcasting revenues and solidarity payments following promotion, and supporters purchasing the ‘Championship Club Membership’, which provided important revenue to the Club.
- Administrative costs increased by £6,661,594 – from £9,038,803 in 2020 to £15,700,397 in 2021. The main reason for this was the increase in player/managerial salaries following promotion to the Championship, of existing and new players, and bonuses following winning League One.
- Wages and salaries to 31 May 2021 increased from the previous year from £5,916,040 (2020) to £11,827,852 – an increase largely as a result of investment into the quality of the playing squad and contracted player/staff wage increases, as the Club returned to the Championship.
- The interest payable during the period was £2,168,021. The value in the accounts is predominately accrued interest from group loans, and was not paid.
- The profit on sale of players decreased £3,818,867 (2020) to £1,870,279. This was predominantly from contingent fees from previous player sales, notably Callum Wilson.
- The Football Club has net liabilities of £27,880,163 – 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.’
Coventry City Chairman Tim Fisher, director of Otium Entertainment Group, commented:
“We are pleased to present these accounts to supporters and confirm that they were submitted to Companies House last Friday.
“The accounts show the impact that the Coronavirus pandemic had on the Football Club, when we had to play behind closed doors and fans were not able to attend.
“While broadcasting revenue and solidarity payments increased, our costs and wages also increased as we invested in the squad following our promotion to the Championship, both in terms of retaining our existing squad and wage increases to them, and also adding further quality to the team.
“It was a huge disappointment that we could not welcome supporters, but everyone at the Club knew that the fans were right behind them and the fans who purchased a Championship Club Membership made a key contribution to the Club.
“It was a very positive season on the field as we maintained our Championship status in our first season back in the league, and this achievement provided the basis for what we have all enjoyed so far this season from Mark Robins, his players and staff.
“Our collective approach of continued and sustainable improvement to the Football Club, on and off the field, is one which has resulted in two promotions in four years and is one which we want to maintain.
“As in previous years, the Football Club continues to have significant liabilities to the Owners SISU, however the Football Club has written confirmation from our Owners of their intention to continue to provide support to the Football Club and to not demand repayment for 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, even when they couldn’t be there in person, and our sponsors and partners for their support during these difficult times.
“I would also like to thank all of the players and staff at the Football Club for their continued hard work and commitment to the Club and to making it one that our supporters can continue to be proud of.”
To view the accounts, please click here.
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.