Coventry City made operating losses of £30,000 a week in 2017/18 and had an interest cost of a further £35,000 on top of this on their loan. Coventry City accumulated losses over the years now nearly £56 million.
There was a slight decrease in year to year turnover of £0.2m. The strategic report complains that the club is put at a competitive disadvantage because of limited access to non-ticketing match day revenues and no non-match day turnover. Whose fault might that be?
Match receipts were static at £2.4m and broadcasting and commercial income was down slightly at £3.5m. Total staff costs at £4.9m were 82 per cent of turnover.
The club paid rent of £545k in 2017/18, presumably on the Ricoh. There were no payments for directors services compared with £175k the previous year.
The Sky Blues bought players for £109k in 2017/18 and had sales of £980,000. Coventry have sell on clauses that could generate a further £650k in respect of players sold.
Coventry had loans and interest due of £38 million to SISU and ARVO at 31 May 2018.
The report notes that the lease on the Ricoh Arena will come to an end at the completion of the 2018/19 season but 'It is envisaged that a resolution will be found that will enable the club to fulfil its fixtures for the 2019/20 season at the Ricoh Arena.' Let's hope so.
The auditors note that there is a material uncertainty that casts significant doubt on the ability of the group and the parent company to continue as a going concern.
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