Accounts Published - May 2024 (23 Viewers)

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TomRad85

TomRad85

Well-Known Member
SonofErnie said:
It demonstrates that club is only viable when profits from player sales are included. Without them there is a £15/16m operating loss.
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Recruitment is so important, has to be pretty much bang on.
 
fernandopartridge

fernandopartridge

Well-Known Member
SonofErnie said:
It demonstrates that club is only viable when profits from player sales are included. Without them there is a £15/16m operating loss.
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I'm wondering if transfer fees paid are incorporated into the administrative expenses which are £12m net of wages, that appears to be quite high. Admin expenses have grown £13m in a year where wages gave grown £5m, so the operating loss for the year is distorted.
 
SHUNT31

SHUNT31

Well-Known Member
Mucca Mad Boys said:
Peterborough’s owner mentioned that it was agreed that the fee would be paid in the summer. A deferred payment may appear in the 2025 books potentially.

However, my (unqualified) assumption would be that for accounting purposes, the fee would’ve been paid in Jan.
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The player would still be recognised in the accounts to May 24 as he became a Cov player from January with the amounts due to be paid to us included on the balance sheet as a debtor.
 
SHUNT31

SHUNT31

Well-Known Member
fernandopartridge said:
I'm wondering if transfer fees paid are incorporated into the administrative expenses which are £12m net of wages, that appears to be quite high. Admin expenses have grown £13m in a year where wages gave grown £5m, so the operating loss for the year is distorted.
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They will yes. Although these will only be the actual fees paid. Don’t include the potential add ons in the future.

If you check the amortisation table (item 12, page 21), £35.4m of player registrations. IMO this would include the full value of the transfers paid, including add ons.
 
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SkyBluePower

Well-Known Member
fernandopartridge said:
I'm wondering if transfer fees paid are incorporated into the administrative expenses which are £12m net of wages, that appears to be quite high. Admin expenses have grown £13m in a year where wages gave grown £5m, so the operating loss for the year is distorted.
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We have nearly doubled our not playing staff from 35 to 61 which is probably right for a club at the top end of the Championship.
As an aside these are the most thorough and professional set of accounts I have ever seen us provide- almost like a real company now.
 
LDJ1984

LDJ1984

Member
Having trawled through some interesting observations:

Retail and match day revenues up and strong would need another club of similar profile to offer a meaningful comparison though.

£35m spent on of both transfer fees and new playing contracts for anyone who signed or renewed between 1/4/23 and 31/5/24

Spent £6.1m between 1/4/23 and 31/5/24 on The lodge and the CBS - hard to know the split but I’d assume vast majority of this is Ryton

Were owed £17m for transfer fees owed between 1/6/24 and 31/5/25 and likely another £7m after 1/6/25

We owe £9m for transfers in we’ve made, also spent a further £10.9m since 31/5/24

CBS rent is somewhere between £1m and £1.4m per annum

we have a £30m intercompany loan between the club and Doug but seems to largely be down to the club requiring a credit facility
 
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SonofErnie

Well-Known Member
fernandopartridge said:
I'm wondering if transfer fees paid are incorporated into the administrative expenses which are £12m net of wages, that appears to be quite high. Admin expenses have grown £13m in a year where wages gave grown £5m, so the operating loss for the year is distorted.
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It’s possible. I’m not an accounting expert and have used straight maths to come up with that number. I guess we paid some significant fees in that period, so perhaps my conclusion is incorrect.
 
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slondonskyblue

Well-Known Member

Analysis of Coventry City Football Club Limited's Annual Report and Financial Statements for the Year Ended 31 May 2024​

1. Financial Performance Overview​

Revenue Growth and Profitability​

  • Turnover: Increased by £8.937M (44%) to £29.306M (2023: £20.369M).
  • Key Revenue Drivers:
    • Match Receipts: Increased by £2.867M due to higher seasonal sales, improved attendance, and FA Cup success.
    • Broadcasting Revenue: Increased by £1.085M through additional TV fees from FA Cup coverage.
    • Commercial Income: Increased by £4.985M, mainly due to taking retail operations in-house and prize money from the FA Cup.
  • Operating Expenses:
    • Cost of Sales rose by £3.267M to £7.920M due to additional costs from in-house retail operations and FA Cup matches.
    • Administrative Expenses increased significantly by £6.655M to £27.212M, mainly due to higher player wages.
  • Profit on Player Sales: £23.678M (2023: £2.368M) – major sales included Viktor Gyökeres and Gustavo Hamer.
  • Profit Before Tax: £8.688M (2023: £4.907M loss) due to the player sales windfall.
  • Exceptional Income: £2.986M in 2023, mainly from tax adjustments and loan write-offs, but none in 2024.
  • Taxation: No tax charge in 2024, as in 2023, due to carried forward tax losses.

Financial Stability and Debt Management​

  • Interest Costs: Significantly reduced from £2.377M in 2023 to £28K in 2024 due to interest-free loans from new ownership.
  • Creditors & Borrowings:
    • Short-term creditors increased to £22.7M (2023: £11.2M).
    • Long-term creditors rose sharply to £38.18M (2023: £6.05M).
    • Intercompany loans increased to £30M (2023: £6M) – indicating financial reliance on CovCityCo Ltd (parent company).
  • Net Assets: £3.11M (2023: £5.58M net liabilities) – a significant financial improvement.

2. Business and Strategic Developments​

Ownership & Financial Support​

  • 2023/24 was the first full year after Douglas King took full ownership.
  • Debt restructuringimproved financial stability:
    • Club no longer pays interest or management charges on certain debts.
    • Parent company CovCityCo Ltd committed to financial support for at least 12 months.
  • Going Concern Status:
    • Club remains financially stable but is dependent on continued support from its owner.
    • Financial planning assumes Coventry City stays in the Championship; relegation to League One could require further financial adjustments (e.g., additional loans or player sales).

Investment in Football & Infrastructure​

  • Squad Investment:
    • Higher player wages reflect efforts to remain competitive in the Championship.
    • New signings worth £35.44M while player sales generated £23.68M.
  • Training Ground & Facilities:
    • £6.16M spent on tangible assets, mainly leasehold improvements and new equipment.
  • CBS Arena Agreement:
    • Extended licence agreement until 2027/28, securing Coventry City’s home ground and providing stability for strategic planning.

3. Managerial Changes and Post-Year-End Events​

  • November 7, 2024: Mark Robins was sacked as First Team Manager.
  • November 28, 2024: Frank Lampard appointed as the new manager.
  • Player Transfers After 31 May 2024:
    • Net £10.96M payable in player transactions.
    • Sell-on and contingent payments of £362K, lower than previous year.

4. Key Financial Risks and Challenges​

Sustainability of Player Sales Model​

  • Majority of profit driven by player sales (£23.68M out of £8.69M profit).
  • Reliance on transfer market success is a risk – future profitability may not be sustainable if player sales decline.

Dependence on Ownership Support​

  • £30M intercompany loan from CovCityCo Ltd is crucial for operations.
  • Club's financial model depends on the owner's willingness to continue funding.

Increasing Operating Costs​

  • Wages and administrative expenses rising – could put financial pressure if revenues do not keep up.

Relegation Risk​

  • Going concern assumptions rely on staying in the Championship.
  • If relegated, club may need to sell more players or seek additional financial support.

5. Summary & Outlook​

Financial Strengths​

✅ Revenue Growth: Strong increases in matchday, broadcasting, and commercial income.
✅ Player Sales Windfall: Profitable transfers contributed significantly.
✅ Reduced Interest Costs: New ownership eliminated major debt expenses.
✅ Stadium Security: CBS Arena secured until 2027/28.
✅ Positive Net Assets: Turned a negative net asset position into a £3.11M surplus.

Financial Weaknesses & Risks​

⚠️ Profitability Heavily Reliant on Player Sales – unsustainable in the long term.
⚠️ Rising Wages & Expenses – financial pressure increasing.
⚠️ Dependence on Owner Funding – £30M loan critical for liquidity.
⚠️ Relegation Risk – could cause financial instability.

Future Considerations​

  • On-Field Performance Will Influence Finances: Staying in the Championship is vital.
  • Cost Control Needed: Wage bill and operational expenses must be managed carefully.
  • Sponsorship & Commercial Expansion: Further diversifying revenue sources will be crucial.

Overall Verdict: Financially Improved but Still Dependent on Owner & Player Sales​

Coventry City FC has shown significant financial recovery under new ownership. However, the sustainability of profits remains uncertain, given heavy reliance on player transfers and owner support. Long-term stability will require consistent footballing success, better cost control, and further revenue diversification.
 
Sky Blue Goblin

Sky Blue Goblin

Well-Known Member
Will add while player sales are unsustainable in the long term, the players we’ve added I can definitely see how we can replicate the player funds. Looking at Sheaf,Milan and Wright for the next three years plus Simms, Dovin and others.

Edit: Plus Rudoni
 
S

slondonskyblue

Well-Known Member
Sky Blue Goblin said:
Will add while player sales are unsustainable in the long term, the players we’ve added I can definitely see how we can replicate the player funds. Looking at Sheaf,Milan and Wright for the next three years plus Simms, Dovin and others.
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Agree - also the short term investments made on infrastructure and facilities whilst expensive, won't be an ongoing cost.
 
S

slondonskyblue

Well-Known Member
SonofErnie said:
It demonstrates that club is only viable when profits from player sales are included. Without them there is a £15/16m operating loss.
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I don't know a single football club operating below the PL that doesn't require this as part of its business model. Billionaire owners aside. Football players are the most valuable 'asset' for a football club. Gyokeres fee received was equivalent to more than half of the clubs turnover across a year in which we got to an FA Cup Semi Final.
 
pusbccfc

pusbccfc

Well-Known Member
clint van damme said:
Might have to cash in on one or two come summer. Nature of the beast unfortunately.
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Likely to happen regardless.

Although Sheaf's value is probably well below what we'd want/need and below what we would have valued him at 6 months ago.
 
TomRad85

TomRad85

Well-Known Member
clint van damme said:
Yeah, we do well.
But they'll always be Dasilvas and Collins's.
It's just the way it is, every club makes signings that don't come off.
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Yeh if you do get flops you want it to be the cheap ones though. If you get your big money ones wrong that's when you really start to fuck it. See Stoke as an example.
 
N

napolimp

Well-Known Member
pusbccfc said:
Likely to happen regardless.

Although Sheaf's value is probably well below what we'd want/need and below what we would have valued him at 6 months ago.
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Sheaf's unlikely to be leaving in the summer, especially when the club opts for the extra year on his contract. Wilson will leave, Allen may be offered a new contract, and maybe someone like MVE will be sold.
 
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