Following recent cashflow imbalances caused by match postponements, Coventry City has reached a ‘Time to Pay’ agreement with HM Revenue and Customs.
Our four opening home games of the season were severely affected due to pitch being unsafe and unplayable at the Coventry Building Society Arena, with three of these games postponed and the Carabao Cup tie against Bristol City being played at Burton Albion.
A further game was postponed in September following the death of HM The Queen.
The postponements had a significant impact on the Club’s cashflow, and while recent fixtures have been able to be played, the postponements have still had an effect on the Club, including disruption for the players and coaching staff.
This ‘Time To Pay’ agreement means that the Football Club has agreed an extended period of time to pay HMRC and ensure that our legal commitments to them continue to be met.
The ‘Time to Pay’ agreement will be completed in December, when the amount payable to HMRC will have been met in full. The agreement was reached in September, and since making the agreement the Club has already paid 3 of the 6 instalments.
Under EFL regulations, the Sky Blues will be unable to sign players during the period of this agreement. With this agreement completed in December, any anticipated transfer business in January 2023 will be unaffected.
Up until this point, the Club did not have any PAYE outstanding payments due to HMRC.
Dave Boddy, Coventry City Chief Executive, said:
“As we have indicated in recent weeks, the postponement of 4 out of 5 home league games at the start of this season has had a significant impact on the Club and our current cashflow.
“The Wasps/ACL position has presented some serious challenges to the Football Club and the sporting performance, and distress to our supporters and is continuing to do so.
“This has been combined with the Club providing initial finance for the pitch improvements, though overall we will not pay any additional costs on top of our rent agreement at the Arena.
“This agreement with HMRC will help us in the running of the Club in the short-term and ensure our commitments continue to be met, and we have already paid 3 of the 6 required instalments. I would like to thank HMRC for their understanding of the situation and working with us on this.
“While we are unable to sign players until December, I would like to reassure fans that the timing of this agreement means that we can address this issue now and that any transfer activity in the January window will be unaffected.”