Coventry City FC\Otium Entertainment Group have filed their accounts with Companies House.
The club have published the following statement regarding those accounts.
Coventry City Football Club (Otium Entertainment Group) and its parent company Sky Blue Sports and Leisure have published the latest set of accounts for the year ended 31 May, 2018.
The financial statements of Otium Entertainment Group show a reduction of £199,673 in the total loss for the year of the business from £2,714,730 (2017) to £2,515,057 (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 Otium Entertainment Group accounts:
- The total club turnover during this period was £5,972,414 – down from £6,134,192 in the previous accounts covering the 2016/17 financial year, giving a decrease of £161,778 – the level of this decrease was not unexpected given that the Club had played in the EFL Division 2 for the 2017/18 season and income from league distributions was lower.
- During this time, direct operating costs increased from the previous year to £1,582,259 from £1,506,587 – an increase of £75,672. This is partly due to additional costs for a successful run in the FA Cup.
- Staff costs to 31 May 2018 increased from the previous year, from £4,172,030 to £4,517,589 – an increase of £345,559 which arose mainly due to the 2017 actuarial valuation on the Football League Ltd Pension & Life Assurance Scheme 2017 being finalised, resulting in a significant increase to the pension accrual being required.
- The accounts show an increase of £507,830K in the club’s operating loss, standing at £1,616,359 for 2018 compared to £1,108,529 for 2017 – this increase again was not unexpected due to the Club having played in the EFL Division 2 for the 2017/18 season.
- There was a small increase of £13,873 to interest payable - from £1,858,410 (2017) to £1,872,283 (2018) - the value in the accounts is predominately accrued interest not paid.
- The profit on sale of players increased by £721,458 to £973,545 (2018) - £252,087 (2017). This was used to offset the operating losses of the Club, which would have reduced such losses to £642,814.
In commenting upon the accounts, Coventry City Chairman Tim Fisher alluded to the success the Club achieved on the pitch during season 2017/18.
"The club got promoted at the first time of asking back to League One and also went on to beat Premier League opposition on our way to reaching the 5th round of the FA Cup.
“Despite relegation to League Two, the Club worked hard to maximise revenue in the circumstances and keep control of costs while maintaining a squad that proved capable of promotion.”
“The players and management of Coventry City Football Club are thankful for the magnificent support shown by the fans who provided a twelfth man on a number of occasions during a very long but successful season. The fans who lined the streets of Coventry for the open top bus parade ahead of the team's civic reception showed just how much the club means to the city of Coventry".
Fisher also commented upon point 2.3 in the club accounts, where it is stated that Coventry City is “exploring a number of options in relation to venues at which to host the football matches for the 2019- 20 season”.
Fisher said: “Our focus remains on agreeing a deal for next season at the Ricoh Arena, the stadium planned and built for the Club, as we stated back in October and on many occasions since. This is best for the Club, the fans and our community.
“While the current impasse remains, with Wasps choosing not to enter negotiations, the Management has a responsibility to the Club and its future, and to its fans, to explore other options that could ensure the Club’s survival if no agreement can be reached to remain at the Ricoh Arena.
“However, our focus remains on working to agree a deal to play at the Ricoh Arena.”